The north London side are nine points behind league-leaders Chelsea following their most recent league clash - a 2-0 defeat at Stamford Bridge.
Wenger, however, feels the Gunners still have hope of competing for the title.
He has, though, indentified areas in which his title rivals have strengthened over the summer. Indeed, the Frenchman believes defending champions Manchester City are 'more complete' going forward, while the Blues are stronger defensively.
"I believe that, maybe going forward, City are a bit more complete," Wenger told beIN Sport, as quoted by the Daily Mail.
"City are more offensive. Chelsea defensively are better but it’s very difficult to say who will be in front but what we want to do is be in front of both of them.
"It is massive, the nine points [gap] after seven games, I agree completely but it is not lost."
Manchester City are currently five points off Jose Mourinho's side in second, with Arsenal four points behind them in eighth.