Goal revealed last month that the France international, who turned 31 on Friday, recently held fresh talks with the north London club but the two parties are yet to reach an agreement.
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When asked if Sagna was any closer to committing his long-term future to Arsenal, Wenger said: "No, he is not close to signing [a new deal]. It is an ongoing process."
As reported by Goal, negotiations between Sagna and Arsenal initially collapsed at the end of 2012 after the Gunners refused to meet the player’s demands for a two-year extension and an upgrade on his £60,000-a-week salary.
Talks re-opened last August and a dialogue has continued over recent months without a breakthrough being reached.
Wenger wants to hold on to the long-serving right-back, who has been a key figure in Arsenal’s resurgence this season and offers experience and versatility that would not be easy to replace.
The Gunners looked closely at replacement right-backs last year, with Schalke’s Atsuto Uchida and Sochaux’s Sebastien Corchia top of their target list, as Sagna appeared on the verge of leaving Arsenal, while an Arsenal delegation flew to Germany last month for talks with Frankfurt over the possible transfer of Sebastian Jung.