- Free agent Welbeck joins Watford
Everton have had a £30m bid for Arsenal winger Alex Iwobi and a loan offer for Manchester United defender Chris Smalling rejected.
The Toffees are expected to return with an improved bid for 23-year-old Nigeria international Iwobi – but it is likely to have to exceed £40m to be accepted.
Iwobi is under contract at the Emirates until 2022 and made 35 Premier League appearances last season, scoring three goals and assisting seven.
Iwobi is not agitating to leave but is willing to move if a deal is agreed.
Smalling, 29, is one of seven centre-backs at United after the £80m signing of his England team-mate Harry Maguire.
He has made 323 appearances for the Old Trafford club, winning Premier League titles in 2011 and 2013.
Watford have signed England forward Danny Welbeck on a free transfer after his release from fellow London side Arsenal, the Premier League club said on Wednesday.
Welbeck, 28, spent five years at Arsenal but played only 14 games in all competitions in his final campaign.
“The Hornets are delighted to confirm the signing of England international forward Danny Welbeck on a free transfer,” Watford said in a statement on the club’s website.