Walcott is looking for as much as £90,000 per week, which is considerably more than the £75,000 the team offered him earlier this season. Still, Arsenal would be wise to shell out extra cash before the talented Walcott bolts for a rival club.
The 23-year-old can be maddeningly inconsistent, but his production of late certainly warrants a big-time contract.
He has scored 10 goals in his last 11 appearances for Arsenal, including hat tricks against Reading and Newcastle. He also added eight assists during that span.
Walcott's speed has always made him dangerous, and with his touch looking more crisp, he has been wreaking havoc on opposing defenses. He has proven to be a force when playing in the center of Arsenal's attack, and Arsene Wenger would be smart to keep him there until someone figures out how to stop him.
In addition to his recent production, the Gunners should bring Walcott back to appease the fans. Arsenal supporters have seen Robin van Persie and Cesc Fabregas leave in recent transfer windows, and the loss of Walcott would be the latest blow to the club.
The young forward/winger definitely has some faults, and it's possible that he'll struggle again once he nets his desired contract. Unfortunately for Arsenal, that is a risk they must be willing to take.