Jack Wilshere, Alex Oxlade-Chamberlaian, Kieran Gibbs, Aaron Ramsey and Carl Jenkinson have signed new contracts with Arsenal while Walcott has held peace talks with manager Arsene Wenger.
"We are delighted that these five young players have all signed new long-term contracts," Wenger said on the club's official website.
The England winger started upfront in the 5-2 win over Reading last time out indicating a good relationship with Wenger. The former Southampton star admitted 'it is good to talk' but is yet to agree personal terms with the North London club.
Walcott, 23, is reportedly demanding wages in the region of £100,000-a-week and has already rejected an improved offer from Arsenal. The England winger, whose contract expires at the end of the season, is a target for Premier League rivals Chelsea and Liverpool.
Wenger admitted being frustrated over Walcott's contract talks but is confident he will sign a new deal at Emirates.
Meanwhile, Wilshere, 20, returned after a lengthy spell at the sidelines and has been rewarded with a bumper contract after an impressive comeback.
Gibbs, 23, has constantly struggled to be fit but has been playing in the first-team lately while youngster Oxlade-Chamberlain has been in fine form this season.