A return to Southampton was always rumoured to be the most likely outcome, and the Saints manager Mauricio Pellegrino has confirmed his interest once again."I have been talking about him", he said.
Southampton are also interested in bringing the England global aboard.
He has gone on to make over 400 appearances for the Gunners, racking up more than 100 goals in the process.
However, Walcott, who scored 19 goals last season despite not playing the last 10 games of the campaign due to Arsene Wenger's change in formation, believes he's good enough to play for another top six club in the Premier League and it's understood a loan move is favoured by the former Southampton man.
Walcott seems certain to leave the Emirates in the summer given his lack of action so far this season.
The likes of Southampton, West Ham, Newcastle, Everton and even Italian giants Inter Milan and Juventus were touted as potential destinations for the 47-time capped English worldwide, but, in the end, a move failed to materialise.
The Three Lions boss said back in November, in reference to Walcott's Arsenal team-mate Jack Wilshere, that playing consistently at club level was essential to be considered for England, per Tom Doyle in the Evening Standard: "I don't know how you get in an England squad without getting in the Arsenal team".
"He is a good player, but I don't know with the negotiations, with the market".
Gunners boss Arsene Wenger has insisted he hopes the England global stays put, but Walcott could be on the move this month. For us it's not easy.