Ozil, 24, completed what is understood to be a £43million switch from Real Madrid on transfer deadline day as Arsenal boss Arsene Wenger finally landed an addition of supreme quality.
Having come up against Ozil in action for England in their 4-0 defeat in the 2009 European Under-21 Championships final, Walcott is in no doubt of the impact he can have for Arsenal.
"It definitely shows a statement that we are ready to step up," said Walcott.
"We had a disappointing start to the season, but we have bounced back and it is looking fantastic now.
"With the likes of Ozil joining the club, it is only going to boost everyone."
Ozil admitted he had not expected to leave the Spanish giants but revealed once it was clear he no longer figured in the first-team plans of Madrid manager Carlo Ancelotti following the world-record signing of Gareth Bale from Tottenham, he had no hesitation in moving on to a fresh challenge at Arsenal.
Ozil is now set to become an integral part of Wenger's team alongside Jack Wilshere, Walcott and Santi Cazorla.
"At the weekend, I was certain that I would stay at Real Madrid, but afterwards I realised that I did not have the faith from the coach or the bosses," Ozil said in an interview with the German Football Association's official website, www.dfb.de.
"I am a player who needs this faith and that is what I have felt from Arsenal, which is why I have joined.
Source: PA
Source: PA