And the England winger is now ready to move himself.
The Sun says the two players are extremely close, on and off the field.
On the table is a new four-year deal that would take his wages of £55,000-a-week to around £80,000.
But Walcott has the option of leaving on a Bosman free transfer next summer or face being sold now if the Gunners refuse to allow him to walk away for nothing.
The only way Arsenal can keep him is to seriously up their offer.