Muamba left north London in 2007 after a five-year stay with the club but grew up alongside the likes of Kieran Gibbs and Johan Djourou.
Wenger has admitted many of his players were affected when Muamba suffered a cardiac arrest at White Hart Lane on Saturday, but the good news on the Bolton players' improved condition has helped boost morale.
“He is a loved guy,” Wenger told the club's official website.
“Because we have a young team, many of them grew up with Fabrice. There is a strong link when you fight together in the youth teams because it creates a special bond.
“The players were quite low yesterday and two days ago but today it is a bit better because we have good news about him.
“Everybody has a bit of relief today but let's not maybe go too quickly overboard and think he is completely out of it. You trust the quality of the care he has, you trust the quality of his mental strength and his desire to fight any restrictions."
However the Gunners boss is also wary about Muamba's long term well-being, and stated that he hasn't been in contact with the player personally but through his club Bolton Wanderers.
“But we are as well a bit cautious as long as we do not really officially know that he is out of danger and that he is completely alright.
“I have not personally been in contact with him but through Bolton we have been in contact. His very close friends have gone to hospital and you want to respect that it is not overcrowded there. At the start we know how it is, many people go, and after a while you need a bit more support.”
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