Southampton sign Tottenham defender Kyle Walker-Peters on loan until end of season

Southampton have completed the signing of Tottenham right-back Kyle Walker-Peters on loan until the end of the season, paving the way for Cedric Soares to join Arsenal.

The deal for Walker-Peters does not include an option to make the transfer permanent at the end of the season after the clubs failed to agree a final fee, with Spurs valuing the 22-year-old at more than £12million.

Walker-Peters began the season as Spurs' first choice right-back following the sale of Kieran Trippier, starting the first three matches of the campaign before a hamstring strain forced him off against Newcastle.

He never won back his place under Mauricio Pochettino and has featured just once since Jose Mourinho succeeded the Argentine in November – in the Champions League dead-rubber defeat at Bayern Munich, where he struggled.

The academy graduate has made a total of 24 first-team appearances for Spurs in two-and-a-half seasons and was eager to leave for more first team football this month.

Crystal Palace were also interested in Walker-Peters but the England Under-21 international was attracted by the prospect of playing for Ralph Hasenhuttl's in-form side.

Walker-Peters is likely to be given a baptism of fire by starting at Liverpool on Saturday, with Yan Valery unwell and Cedric on the verge of joining the Gunners, but he will not be eligible for the FA Cup fourth-round replay against his former club on Wednesday.

Southampton are keen to cash in on Cedric, who will be available on a free at the end of the season, and the Gunners are close signing the Portuguese on a four-year contract for £5m.

The right-back – part of the Euro 2016-winning squad – publicly declaring earlier this season that he would not be extending his contract at St. Mary's.