If Walcott still hopes to play for England at the 2018 world cup then it will be essential that he leaves Arsenal and plays as regularly as possible during the second half of the season.
Should Walcott leave Emirates Stadium many expect forward Alexis Sanchez to follow him out of the exit door, yet Wenger insists the star forward will only be allowed to leave should Arsenal find an immediate replacement.
"You're all aware of our interest in Theo", Allardyce told a news conference.
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"Some negotiations are going on".
The 28-year-old forward has not started a Premier League game for the Gunners since last April and looks to have no future in North London. We have a good relationship with Theo, and I don't want him to be frustrated or lose an opportunity to go the World Cup.
He said: "We'll see".
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"If that can be sorted out it would be a great addition from an attacking point of view".
Walcott has 65 Premier League goals and 43 assists to his name in 269 appearances for the Gunners and Allardyce believes he could be the ideal tonic to his ailing front line. "We're short of goals, so to add power in our goal-scoring ability would be very important for me if we could negotiate that transfer". I'll be very excited and enthused when someone, even if it's not Theo, has signed on the dotted line.
"It is essential that we trim the squad down if we are to bring more players in to adjust the balance of the squad. We've had a number of enquiries but none of those enquiries have hit where our valuation might be".
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Nasir Jannjua that were reported in the Pakistani and the Indian media last month. The meeting between the two NSAs took place in Thailand almost three weeks ago.
Sturridge has 75 Premier League goals across 194 appearances during the course of his career, which eclipses Walcott's record of 65 strikes in 269 matches.