Walcott, who first joined the Gunners as a 16-year-old in January 2006, has played less than an hour of Premier League football this season and may be forced to consider his options.
According to the Daily Mail, a return to his boyhood club could be on the cards as Southampton are eyeing an initial loan deal to boost their ailing attack.
The Saints have scored just 20 times in 21 Premier League games this season, with Shane Long in particular enduring a lengthy goal drought. Walcott previously scored five times for Southampton in 23 appearances way back in 2005/06 when he first broke through.
The newspaper claims that Southampton, Everton and West Ham have all made enquiries over Walcott, while Watford are said to be 'watching developments'.
Walcott, set to turn 29 years of age in March, remains contracted to Arsenal until the summer of 2019 and is currently one of the club's top earners.
At this stage of his career, the forward may have to prioritise playing opportunities over money, but a good move at this stage of the season could even put him back in the reckoning for a place in England's World Cup squad if he hits the ground running at a new club.