Questions were raised over Walcott's long-term future at the Emirates during the summer transfer window after he struggled to get into the team last season.
Now, though, Walcott has found a new lease of life by scoring six times in his last five appearances for the North London outfit.
Ahead of tomorrow's Champions League group game against Ludogorets Razgrad, Wenger told reporters: "[Walcott] lets the passion come out of his body. He plays with more freedom, lets his heart feelings come out.
"He is less calculating. He plays with more freedom and more desire because I think that he is less restricted."
Arsenal are currently at the top of Group A, level on four points with Paris Saint-Germain.