The England man’s current deal expires next summer, and with Robin van Persie opting to spurn an extension Gunners fans are worried that Walcott could do the same.
However, the attacker has stated that talks have been in progress since the end of Euro 2012.
“It was always going to be a case of holding back until the end of the Euros,” Walcott told Sky Sports.
“We continue to talk and we’ll just see where it goes.”
Walcott went on to admit that he had not heard any rumours of a move elsewhere and is eager to help the north London club do well in 2012-13.
“Not at all because I didn’t have a clue about any other clubs, anything.
“I’m an honest guy. I like to get on with my job. I’ve got to work on pre-season, I don’t want any distractions.
“Like I say, my agent and the club will continue to talk and when there’s something to know I’ll get involved.
“The manager has got so much faith in the young players.
“He’s developed them. Every single one of them that comes in seems to suit the way that Arsenal play football.
“It’s the next step that we need to go on to now. Everybody says that we’re a young team but we’ve got a lot of experience now – Champions League quarter-finals and so on.
“So we just need to try and prove people wrong and show what we can actually do and find out what we’re made of,” he concluded.
By Gareth McKnight