Walcott, who missed the 2014 FIFA world cup in Brazil has just one year remaining on his current contract,but hasbeen linked with a move to Liverpool.
When asked about Walcott's stay at the Emirates, Wenger said: "I am confident because I believe Theo has a great future."
The forward has been restricted to five starts this term as he continues his recovery from a knee injury.
But the England international, who has scored 77 goal in 203 games for Arsenal, could be available for Saturday's FA Cup semi-final against Reading.
"He is just coming back from a very, very difficult injury. Every week he is getting better," added Wenger.
"Theo is very young and I believe he will have a great goalscoring record in the future because of the quality and intelligence of his game, and therefore I would like him to stay with our club."
Wenger said he also expects Mikel Arteta and Tomas Rosicky to agree contract extensions at the end of May. BBC
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