The Gunners boss confirmed his admiration for the West Ham midfielder, a player the club has been consistently linked with throughout January as it looks to bolster the midfield
The north London outfit has been constantly linked with a move for the 25-year-old, who is believed to have a 3.5 million pound release clause written into his contract.
Diame has been one of the Hammers' star performers so far this term, notching two goals – including one against Arsenal – in his 18 appearances for Sam Allardyce's side.
Wenger has fueled talk of a move for the powerful Senegalese midfielder, telling reporters: "He has a great presence in the games, I have seen him have a big impact."
Arsenal lost 2-1 to Chelsea on Sunday afternoon, contributing to a haul of just one point from three games that leaves the club seven points behind top four rival Tottenham and level with Liverpool and West Brom on 34 points.
There is better news for the Gunners though, with Mikel Arteta set for a return to the first team this week.