Walcott's place has come under pressure in recent months after the emergence of Alex Oxlade-Chamberlain but he believes that both of them can play in the same team.
"Alex is a good lad and we get on very well," said Walcott.
"He gets on with his job and he is learning the game. But we are totally different players, to be honest. He's told me that he's an attacking midfield player, that he likes to play just behind the striker in that free role. And I can see that because he's very powerful when he gets the ball.
"It's always great to have competition. You want to play well, you want the team to play well and to have other players around keeps you on your toes."
Walcott is in his seventh season with the Gunners since his £12m move from Southampton in January 2006.
The 23-year-old will hope to be in action as Arsenal host Wigan on Monday night as the North London outfit look to open up an eight-point gap in third.