The Blues have been rumoured to be interested in signing the England forward for a number of weeks but their interest has escalated since the January transfer window opened.
Speaking ahead of Everton’s trip to Wembley to face Tottenham Hotspur, the 63-year-old boss said: "It would be very nice if we could get it over the line. Negations are happening but there is nothing imminent. I don’t think there’s any chance of a loan so I think it is a permanent deal we’re hoping to negotiate but we will wait and see.”
When Allardyce took over the role at the beginning of December, he reportedly made an enquiry to Arsenal about the availability of Walcott as he looks positioned to leave the club he joined in 2006.
“He’s proven. He’s scored 100 goals for Arsenal from wide positions as well as assists,” Allardyce added. “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.”
However, it may not be plain sailing for Allardyce and Everton on their way to securing his signature.
According to a report by BBC Sport in the early hours of Friday morning, the Blues are in ‘high level’ talks with Arsenal over the signing of Walcott but face competition from his former club Southampton.
Prior to the window opening, Allardyce acknowledged that Everton had work to do in terms of adjusting the squad and needed a number of incomings and outgoings to rectify the problem.
The Blues also reportedly want to sign a left-sided defender to cover at centre-back and to also deputise for Leighton Baines.
There has been reported interest in Luke Shaw but the club would have to wait and see on that front.