Since Allardyce was appointed at Goodison Park, the Toffees have scored eight times in as many league games, prompting the former England boss to also snap up Turkey worldwide Cenk Tosun last week in a £28 million deal.
When asked about Malcom, Wenger said: "He is a good player but nothing is happening".
During his 12 years with the club, 28-year-old Walcott has scored 108 goals for Arsenal and has made 47 appearances for England, scoring eight times. "I'll be very excited and enthused when someone, even if it's not Theo, has signed on the dotted line".
"He went in 2006 and we are now in 2018 and he hasn't been since for different reasons", Wenger said at a news conference ahead of Sunday's Premier League game with Bournemouth. Allardyce also thinks he can give Walcott the chance to make a late run to try to force his way into England's World Cup squad, however unlikely that may now seem.
'Foreign players will travel all over the world so one of our British or English players moving up the road shouldn't be a problem.
He added: "If it's possible to be over the line I'd be delighted". 'We go through meeting after meeting, all areas, through the FA, through the PFA on what to do and what not to do. I think it's been going on for years that we've been pointing out to players what they do and what they don't do.
"It's not in my hands whatever the situation is now, but we will find out if and when what the course of action is".