Rooney's future dominated the headlines at the end of last month when it emerged that he could be set to leave Old Trafford.
He eventually decided to stay after being given assurances about the club's ambition and put pen to paper on a lucrative long-term contract.
Arsenal winger Walcott concedes that he was gripped by the whole saga and happy with the outcome, insisting that Rooney is worth every penny.
"We like to keep our transfer talk to the dressing room because we respect all the other clubs," Walcott said in The Sun.
"But, like everyone else, I just wanted to know what was going on when I heard about it."
Even though Rooney's departure from United would have weakened one of Arsenal's main competitors, Walcott believes it would have been a major blow for the Premier League to lose a player of Rooney's quality.
He explained: "As an England player, I didn't want to see one of our best players going abroad. You want to see the best players in the Premier League. Me personally, I want to see Wayne playing in England, so I'm glad it's sorted.
"Every time you think of Wayne Rooney and Sir Alex Ferguson, you just think of them as Man Utd. It's great news for the club that they have got their man.
"For me, he's one of the best players I've played with, alongside David Beckham."
Asked if Rooney was worth £250,000 a week, Walcott replied: "He's worked hard since he was a really young age and he's Man Utd's best player, so why not pay him big money?
"To stay in England, with one of the best managers in the Premier League, he's only going to get better and better."
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