Arsene Wenger is confident Theo Walcott will remain at Arsenal, insisting the winger is not motivated by money.
The England player, 23, indicated he could leave by rejecting a five-year deal worth £75,000 a week.
But Wenger believes there will be a resolution and Walcott, with one-year left on his contract, will stay.
"He is not obsessed by money," said the Gunners boss. "There is just a little difference. We want to extend his contract. I think Theo loves the club."
Further talks are planned in the weeks ahead, with both parties having made a commitment to work towards a resolution.
Walcott, who played for England in Euro 2012,
joined Arsenal from Southampton for £12.5m
as a 16-year-old in 2006.
He has scored 42 goals in 222 appearances and won 28 England caps during his time at the club.