The Daily Mail says it is the first time since August 28, when the England forward turned down a five-year contract worth £75,000 a week, that formal discussions between player and club have taken place.
Sources close to Walcott insist the 23-year-old wants to stay at Arsenal. However, he is said to have made it clear he is still currently unwilling to pen fresh terms.
As well as wanting a deal closer to £100,000 a week, Walcott also wants assurances over his role at the club.
But it is believed that a compromise solution of an £85,000-a-week contract may be enough to persuade him to sign.