Wenger is leaving Arsenal after 22 years at the club, with former Gunners captain Arteta revealed by Goal to be the front-runner for the post.
Talks are due to be held between Arsenal and Arteta on Thursday, with Pep Guardiola having confirmed he will allow the Spaniard to leave City, should the 36-year-old be offered the job.
And Wenger has given his backing to Arteta as the next manager of Arsenal, who missed out on Champions League qualification for the second year in a row and lost in the semi-finals of the Europa League.
"He has all the qualities to do the job, yes and I think as well he is one of the favourites," Wenger told beIN SPORTS.
"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?
"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 [Arteta] has been an assistant of Guardiola as well, so overall I think he has the qualities."
Wenger will not be involved in the board's decision over his successor at Arsenal, though.
"I don't want to influence [the appointment] publicly," Wenger said.
"Because for me I believe it is important that they make their choice in an objective way and after they make a decision I will support them."