The 23-year old has just few months left for his contract to expire and at the moment, there had been no positive result from talks and this had raised speculations over a January switch to Liverpool or Chelsea.
Wenger would use the coming international break to sort out issues concerning Walcott with some club officials.
"I think Theo will stay," Wenger said.
"We are always in touch (with his advisors), so we will see what happens. Theo keeps focused and he wants to show he is 100% professional and I have a big respect for that attitude."
Walcott scored Arsenal's second goal in our 3-1 victory over Westham United, after coming in as a substitute, This had increased Arsene Wenger's positivity. Walcott earlier stated he would prefer to play as a forward rather than being used as a winger but Wenger maintains he can still score goals from both positions.
"Theo has finished his finishing and while his game is based on movement off the ball, he can score in the middle. I have always said this. He can play wide, he can play centre. If he plays wide or centre, he gets in positions where he can score."