Walcott has openly stated that he sees his future as a centre-forward, a position that he has failed to hold down in North London.
However, Wenger has utilised the 23-year-old in his preferred role in recent weeks, with positive results.
He netted a hat-trick against Newcastle over the weekend and has looked sharp in his other outings as the focal point of the attack.
The club believe that his extended run in the position may persuade him to pen a new £75,000-per-week deal, despite rumours that he is holding out for a greater wage.
Walcott, who is set to lead the line against Southampton this week, believes that a conclusion will be reached soon:
“I will just continue to play my football, talks are ongoing. I’ve answered this question on numerous times and I’m sure something will be arranged soon.
“I’ve always said I’m a striker and the manager is giving me the opportunity to play up front. I’m not saying I’ll play up front all the time, but it’s just nice to have a different option.
“We are scoring goals from every position and I believe I am a striker.”