The Gunners host the defending champions needing a victory to close back within striking distance of the top four.
City, meanwhile, cannot afford another poor showing at Emirates Stadium - where they have never won in the Premier League - if they are to hang onto the coattails of Manchester United, who host Liverpool in Sunday's lunchtime kick-off.
Wenger admits anything other than a maximum-points haul will do either side's ambitions little good.
"I think they are in a situation where a draw will not be good enough, and we are in the same situation," said the Arsenal manager.
"The fact that both teams have to absolutely go for a win promises a more open game.
"When you are in that (title) situation, you don't want to drop more points because it can be damaging for your chances."
Wenger added: "It (the championship) is still very open. When you watch the games, no team today goes into a Premier League game and is sure to win it, therefore I believe every team can drop points.
"It is much more open than people think it is."
- Sports & Recreation
- Manchester United