Arsenal Wenger: Arsenal FC sack manager
The club said he "had failed to achieve any of the club's targets, with the exception of qualification for next season's Champions League".
Tottenham's Portuguese manager André Villas-Boas has been strongly tipped to replace Wenger.
On Sunday night, 35-year-old , André Villas-Boas who spent one season in charge at Chelsea, insisted there was no deal in place for him to become the new Arsenal boss.
"I deny here and now being the new coach of Arsenal FC," he said after Tottenham's goalless draw. "I haven't signed any agreement with anybody."
In a statement, Arsenal thanked 63-year-old Wenger for the job he had done since joining the club in 1996.