The 36-year-old has emerged as the favourite to take charge of the Gunners and become the club's new manager, per Kaveh Solhekol at Sky Sports.
Wenger told beIN Sports (h/t Thomas Bristow at the Mirror) that he believes the Spaniard has all the attributes required.
"He has all the qualities to do the job, yes, and I think as well he is one of the favourites," Wenger said. "He was a leader, and he has a good passion for the game and he knows the club well, he knows what is important at the club and he was captain of the club. Why not?"
One factor that may count against Arteta is his lack of managerial experience. However, Wenger highlighted how there are plenty of staff at the club able to help out the former midfielder.
"I left a lot of experience behind me, people who were with me like Steve Bould, who has six years experience, and Jens Lehmann too," he said. "He has been an assistant of [Manchester City Pep] Guardiola as well, so overall I think he has the qualities."
Arteta is close to taking the job after holding talks with the Gunners. He also wants Arsenal midfielder Santi Cazorla to be offered a player/coaching role, per Miguel Delaney at The Independent.
James Olley at the Evening Standard explained why Arteta would be a gamble for Arsenal:
The Spaniard spent two years at Arsenal before moving to Manchester City in 2016 to work as part of Guardiola's coaching staff. He knows the Gunners well and will have learned plenty from Guardiola, who is widely regarded as one of the best coaches in the game.
The City boss has spoken highly of his colleague, as shown by Goal:
Former Arsenal striker Ian Wright has also given his backing to Arteta:
Endorsements from Wenger and Guardiola can only help Arteta's cause and also show that he is held in high regard by the football community.
If the club do appoint the 36-year-old, it seems it will be part of a restructuring move and he will be responsible for team affairs. Transfers may be handled separately, and the club are already targeting a £75 million spree despite being without a manager, per the Sun's Mark Irwin.
Appointing Arteta would be a brave move by Arsenal, but bringing in Wenger from Japanese club Nagoya Grampus Eight in 1996 was also seen as something of a risk at the time as he was largely unknown in England. Wenger knows exactly what it takes to do the job, and his comments may help convince Arsenal that Arteta is the right man.