Walcott is yet to sign an extension to his current contract which expires next June, alerting the likes of Manchester City and Liverpool.
Arsenal faced a similar scenario earlier this summer and eventually chose to sell Robin van Persie to Manchester United, rather than risk losing him on a free next summer.
Wenger, however, is adamant that the England winger will not be sold to the highest bidder before Friday evening’s transfer deadline and is hopeful that a resolution to the contract negotiations that collapsed last week can be found.
He said: "Theo has one year to go. We want to extend his contract. I think Theo loves the club.
"He is not obsessed by money, there is just a little difference [in the negotiations]."
While Walcott now looks set to extend his Arsenal career, fellow forwards Marouane Chamakh and Nicklas Bendtner look certain to be on their way.
Former Bordeaux striker Chamakh has been linked with a loan switch to Malaga, while Denmark international Bendtner is currently top of Juventus' wish list after their hopes of signing Dimitar Berbatov ended on Tuesday.
Asked about the future of Bendtner, Wenger said, "There is a chance he is leaving. Where is not decided at the moment."
On Chamakh, he added: "Again, we haven't made an agreement with any club."