That is the view of player-turned-pundit Stan Collymore.
Wenger's Arsenal career is imploding around him with fans beginning to turn on the Frenchman.
Saturday's shock 3-1 defeat to West Brom was their fifth loss from their past nine games.
Express Sport understands Wenger has agreed to stay at the Emirates for at least one more season.
But Collymore believes he is out of his depth and that many of Europe's top managers would be a better fit for the managerial hot seat.
Arsenal fans display banners calling for Arsene Wenger's exit
Sat, March 18, 2017
Arsenal fans raised banners calling for Arsene Wenger's exit after the Gunners lost 3-1 to West Bromwich Albion
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Arsenal fans raised banners calling for Arsene Wenger's exit at The Hawthorns
Arsene Wenger has been slammed by Stan Collymore
Arsenal fans are growing increasingly angry at Arsene Wenger
"If Arsene Wenger does stay on at Arsenal it could be massively damaging for the club," Collymore told The Mirror.
"One big problem could be the managers they miss out on by not making a change now.
"There are a lot of managers that would walk to Arsenal. For the next man, it is all laid there in front of him.
"The club is in a world famous city, attracts 60,000 fans to matches, is a huge revenue generator, has lots of cash in the bank and a fine domestic history.
Stan Collymore believes Jose Mourinho and Pep Guardiola are better than Arsene Wenger
"But if you are the likes of Diego Simeone, Thomas Tuchel , Jorge Sampaoli, Max Allegri you would think ‘if Wenger is going to stay for another two or three years, in that time the Bayern Munich job might come up. Or the jobs at Chelsea, Liverpool or perhaps even Manchester United.’
"All clubs with much better pedigree than Arsenal domestically and in Europe.
"Surely Arsenal’s owner Stan Kroenke can see that not only are there managers out there like Jose Mourinho, Antonio Conte, Sampaoli, Allegri, Jurgen Klopp and Pep Guardiola who are winning trophies but they are also younger and fresher.
"Wenger is now an analogue manager in a digital age."