The Frenchman, who has not steered Arsenal to a trophy triumph in seven years, was booed by supporters following their FA Cup exit against Blackburn Rovers on Saturday.
Despite fury from the fans, it has been reported that the Gunners board are poised to offer Wenger a fresh two-year contract.
"I'm not surprised that Arsene Wenger is being offered a two-year deal," Groves told talkSPORT. "The board and Stan Kroenke regard him in very high esteem. At the moment though Arsene is too comfortable, there seems to be an air of complacency.
"Most of the fans still respect Arsene Wenger but if you heard the reaction after the game against Blackburn you would have thought half of them were against him. It will be the supporters who decide Wenger's future. Arsenal would never sack him but if the fans turn on him then he would walk away."
Meanwhile, Arsenal take on Bayern Munich in the first leg of the Champions League round-of-16 tie at the Emirates tomorrow.