Arsene Wenger has admitted he would look at the possibility of selling Theo Walcott in January if his contract situation is not sorted out.

Walcott's current deal is set to expire at the end of the season, with the forward rejecting the Gunners' contract offer of £75,000 a week ($121,000). Walcott is holding out for at least £100,000 a week ($162,300) and his representatives are refusing to back down.

The 23-year-old, who was a regular starter for Arsenal last season, is yet to start for the Gunners ever since rejecting the contract offer, and Wenger admitted it might have been playing on his mind, when it came to selection issues. "I haven't picked him, it's true and it's quite a good question," Wenger is quoted as saying by the Daily Mirror.

"I still hope to sign him and the next two months will be vital because after that, the longer this situation lasts the more difficult it is.

"Let's hope we can find a solution in the next two months, but the fact he doesn't play regularly at the moment is right, but it's not necessarily linked with his contract situation."

If Walcott does not sign a new deal by January, he will be free to talk to clubs outside England and come to a pre-contract agreement. However, Wenger did not rule out both scenarios - keeping him until the end of his contract or selling him when the transfer window opens.

"It will depend on the needs of the team and the club," the Arsenal manager added.

"We can afford to go to the end (of the contract) if needed. No player is happy when he doesn't play."

Walcott also wants to be rewarded for his image rights, after Arsenal took him to the preseason tour of Asia despite the forward being a part of England's Euro 2012 squad.

The thing that is in favor of Arsenal, however, is the fact that Walcott genuinely wants to be a part of Arsenal's long-term future, pointing to the fact that a deal will be agreed upon eventually, although the lack of progress is a cause for worry.