The England winger has been sidelined for the last nine months since damaging cruciate knee ligaments in the club’s FA Cup victory over Tottenham Hotspur earlier this year.
With the 25-year-old now back in training with the Gunners after his recovery, Wenger says he will bide his time before bringing Walcott back into the first team next month.
Former Southampton star Walcott has taken the early steps to a return by featuring for the club’s Under-21 side earlier this month.
And he will play for them again at Stoke City on Saturday rather than join Wenger’s squad for the trip to face Sunderland in the Premier League, before an expected first-team return for the game with Burnley at the Emirates Stadium next weekend.
"He has to get used to contact again, it takes time to get used to being kicked again,” revealed Wenger.
"He has been out for nine months and it was a big injury. It takes a bit of time to settle and get used to be kicked again.
"He has a game that exposes him so he needs to feel he is completely confident.
"But he is not far, fitness-wise, so he is there to play a part in the game. On the contact front, I think he needs a bit more time."
Wenger also paid tribute to Walcott’s attitude during his recovery, after seeing the injury rule him out of Arsenal’s FA Cup victory and England’s World Cup trip to Brazil.
"I must say he had a very difficult time," he added.
"He's a very polite and social guy, but behind that, he is mentally very strong.
"For what he has gone through in the last nine months then you gain more respect for him because he has had some difficult times and he has responded positively. He has done extremely well."
"After seeing what he has gone through over the last nine months, you respect him more."