Kahn claims he has never seen a team play as badly as the Gunners during their 5-1 capitulation to Bayern at the Allianz Arena on Wednesday.
Unless they can fashion the most unlikely of second-leg comebacks, Arsenal are now set to crash out of the Champions League at the last-16 for a seventh straight year.
Germany international Mesut Ozil was singled out by Kahn as a particularly poor Arsenal performer and he suggested under-pressure Wenger – who is out of contract at the end of the season – is no longer being listened to.
"I have never seen a team play so bad," Kahn said to ZDF. "Bayern played a team so catastrophically bad without the ball.
"The players were so passive, especially Ozil. It is as if they don't take the coach seriously anymore."
Kahn also insisted he is not in line to become Bayern's next sporting director following the departure of Matthias Sammer last year.
He added: "For me, taking the position of sporting director was never up for debate."