Arsenal manager Arsene Wenger remains hopeful Theo Walcott will commit his long-term future to the club.
Walcott's situation has been the subject of continued speculation in recent months, with negotiations between the club and player ongoing.
It is understood Arsenal are ready to make the 23-year-old one of the highest-paid players at the club with a £90,000 per week five-year contract.
Wenger said: "We are on a good road. In this situation as long as nothing is signed, you are cautious. However, I am optimistic we will get to a happy conclusion.
"Discussions are progressing slowly, but smoothly. We still work on the transfer market, but do not want to bring in average players."
Arsenal have been linked with a string of players including Barcelona's David Villa.
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