Arsène Wenger has defended Theo Walcott following criticism of the Arsenal forward’s performance for England against Italy, saying he is still regaining his sharpness after returning from the knee injury that kept him out for almost a year.

Walcott struggled to make an impact in an unfamiliar central role in Tuesday’s 1-1 draw in Turin, first as a partner for Harry Kane and then as a No10, and England’s equaliser came after he was replaced in the 55th minute, leading to suggestions he could fall out of favour with Roy Hodgson.

It has been a difficult period for Walcott. The 26-year-old has found himself on the bench in recent weeks for Arsenal and the uncertainty over whether he will sign a new contract has prompted speculation about his future. Walcott’s deal runs out at the end of next season.

Wenger, who was dismissive about rumours linking Arsenal with a summer move for Liverpool’s Raheem Sterling, said it will take a while for Walcott to shake off the rust. Walcott missed the World Cup after rupturing the anterior cruciate ligament in his left knee against Tottenham Hotspur last January and only returned in November.

“I don’t worry about Theo because he’s not completely there yet and I told you that a few times,” Wenger said. “He has been out for a year with a very bad injury and he’s coming back. But being exposed like that, people have a harsh judgment on him that is not deserved because he does well. For me, he is on course to come back but he’s not completely there.”

Despite admitting Walcott can be sensitive, Wenger is not overly concerned about the Italy game having an adverse effect. “He is not fragile mentally, he is strong mentally,” the manager said. “But he is disappointed because when you come back you always think you are ready.

“He needs patience. He is at the moment not in his best mood. He is not a fragile type. He has big confidence in himself and he has gone through some difficult periods in his life and he has always come out with strength.”

Wenger said he has never played Walcott as a No10 before. “Theo’s strength is the quality of his movements, he wants to go to get on the end of things,” he said. “He’s not a guy who provides.”

The Frenchman felt the switch in position with Wayne Rooney during the first half was not necessarily a direction from the bench by Hodgson. “I don’t think it was the intention of Roy Hodgson to play him there,” Wenger said. “Maybe Rooney took the initiative during the game to play higher up and tell Theo to drop back. I haven’t seen Roy Hodgson in the game standing up to say: ‘Walcott, you come and play in midfield and Rooney you go up front’. That’s an initiative they took on the pitch.

“It was a complicated game for the strikers because Italy defended with three centre-backs, two players in front of the two centre-backs and England played all in there so there was no room, no space.”

There is a chance Walcott could start against Liverpool on Saturday. Alex Oxlade-Chamberlain is struggling with a hamstring injury and Danny Welbeck is a doubt after returning from international duty with a knee problem.

Mathieu Debuchy and Jack Wilshere could be involved after returning to training this week, while Wenger indicated that Abou Diaby, whose contract runs out at the end of the season, could be offered a new deal despite his fitness issues.

Diaby, who played 45 minutes in a practice game on Tuesday, broke his ankle against Sunderland in 2006 and has struggled with injuries ever since, making only 22 appearances in the past four seasons.

The French midfielder has featured once competitively this season, playing for 67 minutes against Southampton in the Capital One Cup in September, but Wenger suggested there is a chance Diaby could remain at Arsenal if the right deal can be agreed. However he cautioned that Diaby will have to prove his fitness over a sustained period.

“I had a chat with him and told him how I can envisage the future,” Wenger said. “He has to make a decision. Of course he understands completely that he has to perform and to show that he can be present on a consistent way.

“I will see where we go from there. I wouldn’t like to go into details, we have to meet again to see where we go from what I told him. It has to be linked a little bit with his presence.”