Speaking before the Gunners' clash at home to West Brom tomorrow, Wenger revealed his belief that full-back Bacary Sagna — who was linked with the Arsenal exit in midweek reports — will sign a new contract at Ashburton Grove.
But he added that the future of Walcott, who misses tomorrow's game with a calf injury, was much less certain.
The England forward, 23, will be out of contract at the end of the season, and there has been speculation he will be sold in the January transfer window.
Wenger said: "With Theo, I have no news. Honestly, I am frustrated.
"Between the player and me it is all clear, he knows what he wants and he has to make up his mind."
Injuries have forced Wenger to shuffle his front line for tomorrow's game, with forwards Walcott and Lukas Podolski (hamstring) missing.
Defender Bacary Sagna (foot) is also a major doubt for the hosts and Laurent Koscielny (thigh) is definitely out.
Meanwhile Baggies boss Steve Clarke has demanded that side respond in positive fashion after a recent mini-slump.
West Brom have suffered defeats to Swansea and Stoke after previously climbing to third spot in the division and Clarke wants a reaction.
He said: "I'm not looking for a response, I'm expecting it because that's what they've done before.
"Our aim is to make sure we get back on a positive footing as soon as possible with a good performance at Arsenal this weekend."
The Baggies are almost at full strength for the contest, with goalkeeper Ben Foster (groin) the only absentee.
Elsewhere Aston Villa chief Paul Lambert may recall Charles N'Zogbia for the visit of Stoke, whose manager Tony Pulis is waiting on the fitness of Peter Crouch.
Southampton host Reading in a relegation six-pointer, while Wigan welcome QPR in another basement battle.
Swansea face Norwich at the Liberty Stadium and finally Frank Lampard is set to return for Chelsea's visit to Sunderland.
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