Both Arsenal officials and Theo Walcott's representatives remain optimistic that they will come to an agreement over the player's contract, reports The Telegraph.
Walcott is entering the last 12 months of his contract at the Emirates Stadium and there are already suggestions of an impasse between the two parties. Widespread reports have claimed that the forward is looking for an increase on his £100,000-a-week wage while others have claimed Arsenal want to reduce it.
Arsene Wenger has admitted that contract talks with Walcott were always going to be slow, but the player himself took to Twitter to claim that he was yet to be offered one by the club. This has all led to reports that Walcott could force his way out of north London.
Premier League interest
Liverpool and Chelsea are both interested while Manchester United are also believed to be monitoring the situation. However, for the moment it seems there is still plenty of hope between both Walcott and Arsenal that a deal will eventually be reached.
The problem lies in Walcott's strange situation. When he signed his last contract two years ago he was the best attacking player at Arsenal's disposal. A 12 month absence with a serious knee injury has brought about significant changes.
Walcott now finds his place in the team taken up by Alexis Sanchez and Alex Oxlade-Chamberlain. He is a squad player for Wenger at the moment and the priority for the 26-year-old will be to earn his place back.
But despite the fact he has gone backwards since he became Arsenal's best paid player in 2013, Walcott is unlikely to agree to a pay cut. In fact, he is more likely to seek parity with Arsenal's highest earners, Sanchez and Mesut Ozil.
Arsenal will feel like they have the upper hand in this round of talks. Liverpool are unlikely to be able to offer Walcott Champions League football while Jose Mourinho would not be able to grant Walcott a place in his first team.
The revolving door of Old Trafford means even the likes of Angel di Maria are uncertain of their roles. Walcott will be settled in London and at Arsenal. He won't want to leave a club that is getting stronger for a more uncertain future at a Premier League rival. But he will also want to feel.
What do you think about Theo Walcott's contract situation? Is he still worth £100,000-a-week or should Arsenal let him go? Give us your views in the comment box below!