The Gunners take on the Citizens at Wembley on Sunday, February 25 as Wenger hopes to become the eighth manager to win the English top-flight as well as the FA Cup and the Carabao Cup.
"He's had an exceptional development," Wenger told reporters. "One of the big strengths of Manchester City is De Bruyne.
"He is a modern midfielder for me, he can be decisive in the final third.
"He works very hard; he is right footed, left footed, a fighter as well. Overall, I am not surprised [by his performances].
"They have so many players that you could think about how to stop that it is better you focus on the team plan rather than any individual."
Sunday's final is Arsenal's eighth in the competition, but they have only won the competition on two of those occasions. Manchester City are playing in their third final in the past five years and their sixth overall.