Walcott's current contract ends this summer and Wenger wants the 23-year-old to extend his deal.
Negotiations between the two sides have been going on for "a long, long time," Wenger said, but nothing has been done, putting other clubs on alert.
"He knows what I want and he has to make up his mind," Wenger said at his pre-weekend match press conference.
"We have not made any progress. I have no news, I am frustrated. mentioned furious Wenger.
Walcott, who is Arsenal's leading goalscorer this season with 10 goals from 17 appearances, reportedly rejected a five-year deal worth 75 000 pounds (120 000 dollars) per week this summer.
If the two sides cannot agree, Walcott would be free to sign a pre-contract with another club in January, or could even leave for free in the summer.
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