Theo Walcott has reportedly held formal discussions with Arsenal over a new contract for the first time since August.

According to the Daily Mail, the 23-year-old forward discussed his situation with manager Arsene Wenger this week following the Gunners' 5-2 away win against Reading in the Premier League on Monday.

Walcott's current contract with the London club runs out at the end of the season and the two parties have yet to reach an agreement on a new deal.

The England international, who scored against Reading, reportedly wants a weekly salary of close to £100,000 and wants to be played as a centre-forward instead on the wings.

Arsenal offered him a five-year contract worth £75,000 a week in August, but he turned it down.

However, it has now been reported that Walcott is ready to lower his wage demands to £85,000 per week.

Walcott joined Arsenal from Southampton in 2006.