El Tel wrote in The Sun: "The England star is yet to agree a new contract with the club, even though his current deal expires in the summer.
"Word on the Holloway Road is that Walcott, currently on £65,000 a week, has rejected new terms of £80,000 a week.
"Some have said he is holding out for £100,000 a week. But I hear from well-informed sources that he would sign on the dotted line like a shot for £85,000 a week.
"To put it into perspective, that is five grand a week LESS than Andrey Arshavin earns.
"Arsene Wenger keeps on saying he wants Walcott to stay. If that is the case then the Arsenal boss has got to show it.
"I do not see why they are quibbling over £5,000 a week. Even if it is more, surely Theo’s worth it?"