The forward's potential deal could be worth £90,000 per week.
Theo Walcott, who has been Arsenal's most efficient attacking player in terms of goals and assists this season so far, and whose current contract runs out this June, may be close to a new deal that will see him in an Arsenal kit for the long-term future, according to the Guardian:
The 23-year-old, whose current deal expires at the end of the season, would be paid about £90,000-a-week with a significant signing-on bonus, thought to be worth around £3m, written into the agreement should he agree to extend his stay at the Emirates stadium for a further five years.
Arsenal will reopen talks with Walcott's representatives in the next 24 hours and, while the deal is unlikely to be signed before the weekend, the management are confident they will be able to announce the player has committed his long-term future to the club, perhaps even next week.
The Guardian's reputation as a super-credible source of news has faded a bit in recent years, but the rumblings coming from the Arsenal camp have been positive for a while, and manager Arsene Wenger has made it clear that his desire switch for the forward has long been permanently locked into the "maximum" position. The deal might be a ways from getting done, but Walcott has been seeing more of his desired "center forward" position in recent matches.
When Walcott is fully operational, Arsenal simply have no player like him, and even though he is less effective in many ways against packed, deep defenses, his speed and finishing and ability to create from wide positions are important for Arsenal's attack. In addition, he counts as a homegrown squad member.
As more news about the transfer come out, we'll have all the news for you. Stay tuned.