Former Southampton youngster Theo Walcott has signed a long-term deal with Arsenal for an initial £5-million ($8.5-million) which could rise to £12-million ($14.5-million) if he proves his worth with the club, the Premiership side announced on Saturday.

“We are delighted Theo has signed for the Club and will make a fantastic addition to our squad,” Arsenal boss Arsene Wenger told the official website.

The highly rated 16-year-old, who joined the club as a scholar and is will turn professional on his 17th birthday, on March 16th 2006, could either as a forward or an attacking midfielder, an aspect that caught Wenger’s attention.

“Theo Walcott is a very young player, but has already shown in his performances for Southampton that he is a talented player with huge potential.

“I also like the fact that he is a versatile player who is incredibly dedicated, shows great determination to succeed and is blessed with electric pace,” he added.

The England Youth international was the youngest player to make it to Southampton’s first team, where he made 13 appearances and scored five goals.

“I’m so pleased to be joining Arsenal, a club I have admired for a long time. Coming to Arsenal will give me the opportunity to work with world class players every day and play football at the highest possible level,” Walcott said.

Walcott insisted that he was happy to step-up his career with a deal with Arsenal, but also said that he was moving from Southampton, where he started his career.

“It’s a strange day, because I’m also very sad to be moving from Southampton. I’m leaving many friends and some great coaches who have been so important to my career so far, but I leave with many great memories from the club. I’m now really looking forward to meeting my new team mates and working hard as an Arsenal player,” he said.

Theo was also called to the England under-17 squad one year about his age group and scored five goals from nine appearances in one season.