The 26-year-old has been out of favour with the Gunners this season, having been restricted to just one start and six substitute appearances in the Premier League - paving the way for him to depart the Emirates this month.
West Ham United were touted as a potential destination for the Frenchman but a bid failed to materialise, and now Spanish side Valencia have had an offer thought to be in the region of £12m accepted by Wenger's side.
"He goes to Valencia," Wenger told Sky Sports News. "He didn't get enough games with us this season. He had an opportunity. I let him go."
Coquelin moved to Arsenal in 2008 and went on to make more than 150 appearances and win two FA Cups during his decade at the Emirates.