The England international had reportedly rejected a contract extension believed to be worth around £70,000 per week at the club earlier last season, and no new deal had been agreed between the North London club and Walcott after that.
Speculation then began to emerge that Walcott could be sold over the winter transfer window to the highest bidder with negotiations continuing to break down.
However, according to the latest news from a number of media outlets, Walcott is set to pen a new three-year-deal at the club sometime in the next few days.
Arsenal's tortuous negotiations with Theo Walcott over a new contract finally appear to be edging towards a favourable conclusion with the Premier League club expected to make an improved offer that will effectively be worth £25 million in a bid to retain the England forward's services.
The 23-year-old, whose current deal expires at the end of the season, would be paid about £90,000-a-week with a significant signing-on bonus—thought to be worth around £3 million—written into the agreement should he agree to extend his stay at the Emirates stadium for a further five years.
The news simply could not have come fast enough for Arsenal.
The North London club needed to wrap up a new deal with Walcott before things truly got out of hand—proving to fans and the league alike that they are still a together organization that can be competitive throughout the remainder of the season.
Having already watched a number of quality players leave over the summer and then be unable to wrap up deals which seemed like being real possibilities, Gunners fans had been left wondering what exactly is going on at the Emirates Stadium at the moment.
Yet with the new deal for Walcott, it seems that much of that anxiety and impatience will have been restored into confidence and true once more.
The England international might not be the Gunners' long-term solution at the top of their attack, but he is their leading goal-scorer this season and has done everything to show that he deserved a new deal. He is rumored to be given another opportunity to prove himself even more, with Wenger thought to be starting the striker this weekend when the club takes on Manchester City.
Should that take place, we could very well see a transfer announcement about Walcott's future sometime on Friday from the club.
That was the way the club announced it earlier this year when they had new deals for Jack Wilshere, Alex Oxlade-Chamberlain, Keiran Gibbs and several others, and it could very well be the path in which the club goes down once more here for Walcott.
Either way, the commencement of this new contract for the 23-year-old comes as a huge sigh of relief for all involved—fans, Arsenal management and Walcott himself—that the Gunners aren't completely lost at sea this season.
In Arsene We Trust, after all.
Is a new deal for Theo Walcott the right thing for Arsenal?
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