The Saints are open to letting the veteran forward leave on deadline day with several clubs believed to be interested in him.
A move to Cardiff City was in the offing earlier in the day but that interest has cooled off and Walcott is now getting linked with a move to West Brom.
The Baggies were in talks with the Saints and the player’s representatives over taking the forward to the Hawthorns.
It has been claimed that West Brom were looking to agree on a one-year loan, which would have taken him to the end of his contract with Southampton.
Steve Bruce is a fan of the forward but a deal will not be happening and Walcott is set to stay at the south coast club.
The forward is yet to play for Southampton but is happy to continue at St. Mary’s Stadium.
If he does not leave by the time the window closes, he will return to Ralph Hasenhuttl’s first-team squad.
