Walcott's situation has been the subject of continued speculation, with negotiations between the club and player ongoing.
It is understood Arsenal are ready to make the 23-year-old forward one of the highest-paid players at the club with a five-year contract worth around £90,000 each week, which would be boosted by lucrative add-ons.
Wenger said today: "We are on a good road.
"In this situation as long as nothing is signed, you are cautious.
"However, I am optimistic we will get to a happy conclusion."
Arsenal are keen for Walcott to sign before the end of the month, and Wenger said: "Discussions are progressing slowly, but smoothly."
When asked about possible other deals during the transfer window, Wenger said: "We still work on the transfer market, but do not want to bring in average (players)."
Arsenal have been linked with a string of players including Barcelona forward David Villa, and have seen their attacking options hit by the African Nations Cup, as forward Gervinho is away with the Ivory Coast.







