Watts was speaking in his latest YouTube video and was asked about Arsenal’s plans for Walters heading into the summer.
Mikel Arteta looks set to bolster his squad significantly over the coming weeks after narrowly missing out on the Premier League title last time out.
The Gunners are closing in on deals to sign West Ham United skipper Declan Rice and Ajax defender Jurrien Timber.
Timber is expected to come in and provide quality cover at centre-back, while he could also fill in at right-back if required.
Walters has trained with the first-team regularly over the past year and is expected to have a bright future ahead of him at right-back.
And Watts has claimed that while Arteta is a huge fan of the youngster, he could head out on loan this summer.
Arteta a huge fan of Walters
Watts was asked if the possibility of Rob Holding leaving Arsenal could affect Walters’ chances of heading out on loan.
“I think there’s a good chance that Reuell Walters goes out on loan,” the journalist responded. “He’s very highly-rated, Mikel Arteta does like him.
“He’s more experienced than anyone else in that current crop coming through. He obviously played some games last summer on the tour.
“He’s always been in and around the first-team squad, he trains a lot with the first-team squad. He just looks a little more physical than most of them.
“So, I wouldn’t be surprised if Arsenal move him out on loan this season and think that would be better for his development than a season with the Under-21s.”
It would make sense for Walters to head out on loan this summer to get some valuable first-team experience.
With Timber looking likely to make the switch to north London, it’s difficult to see Walters getting his opportunity this season.
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