The winger has just one year remaining on his current contract with the Gunners and will find himself in a similar situation to Robin van Persie, who has announced his intention not to re-sign next summer, if the club fails to extend the deal.
Walcott claimed that his agent has taken charge of the talks and that he will only become involved when needed, insisting that his focus on Euro 2012 was always bound to delay progress.
"It was always going to be [a case of] hold back until the end of the Euros," Walcott told Sky Sports News.
"We continue to talk and we'll just see where it goes."
The 23-year-old said he was unaffected by transfer rumours and had switched his attention to Arsenal's pre-season tour of Malaysia.
"Not at all because I didn't have a clue about any other clubs, anything," Walcott reiterated.
"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."
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Despite his young age, Walcott is about to embark on his seventh season at Arsenal and praised Arsene Wenger for giving young players opportunities to impress.
"The manager has got so much faith in the young players," he added.
"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 [in 2010] 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."