The Ghana-born midfielder, who spent the first half of the season at Charlton, has signed with the Cottagers until the end of the season.
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And Wenger has explained that the move is vital to help the 21-year-old develop as he continues to regain full sharpness following a lengthy lay-off due to a knee injury.
"At the moment he has many players in front of him and he is at an age where he needs to play," Frimpong told the club's official website.
"I am 100 per cent convinced he has the quality to play in the Premier League.
"He comes back from injury, the players in front of him are fit and he’s a bit stuck there. I want to give him an opportunity to play."