The News of the World reports that Walcott will be offered a lucrative long-term deal when he sits down to discuss his future with Arsene Wenger in a few days' time.
The 19-year-old forward is currently earning around £30,000 per week, but Wenger and the Gunners' board will double his pay in a bid to keep him at Ashburton Grove.
Walcott has transformed from a highly rated prospect into a world-renouned prodigy within the space of a few months, largely due to his international exploits. The England star's hat-trick against Croatia, in particular, turned several important heads.
Real Madrid and Chelsea have both been linked with the former Southampton player, but young Walcott seems perfectly satisfied with his situation in North London and is unlikely to jump ship anytime soon.
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