The Russia international has failed to make an impact for the Gunners this season and has not managed to cement a spot in the Premier League side's starting lineup.
Former Arsenal boss George Graham slammed the 30-year-old for not being worthy to play for the North London side.
"I think he has been great for us and he will still be great in the coming months," talkSPORT quotes Wenger as saying.
"He is a great player and you have to give him credit for that. He stands up for his performances. I personally respect him highly and I think he's a great player."
It is unclear whether Arshavin will start for Arsenal when they take on Stoke City this weekend.