The 25-year-old winger will soon be entering the final 18 months of current deal, prompting the London outfit to begin talks over an extension to his reported £100,000 a week deal.
Walcott featured as a substitute in Saturday’s Premier League victory over Burnley, making his long-awaited return after suffering a cruciate ligament injury at the start of the year.
Commenting on Walcott’s contract situation, Gunners boss Arsene Wenger said: “We are starting to sit down with him.
“I think he has one and a half years to go on his contract in December and it is never an easy job with him, you know.”
He added: “Will he be at his peak in the next few years? He should be, yes.
“He is 25. It is the best years now so hopefully we can profit from that.”