It has been a remarkable start under Claudio Ranieri; especially given they narrowly avoided relegation last season.
That escape saw them go on a fine run of victories to surge out of the relegation zone and stay in the top flight, and Wenger says he saw something special when they visited the Emirates last season.
“It is a surprise. Leicester fought not to go down last season but they won their last seven games,” he told arsenal.com.
“When we played against them last season at Emirates Stadium we came to the conclusion there is something special in this team already so overall they surprised everybody and congratulations to them.”
Striker Jamie Vardy has been key to the Foxes success so far this season, with his goalscoring exploits taking all the headlines.
Vardy currently tops the goalscoring charts with 13 goals to his name, while he has also equaled Ruud Van Nistelrooy’s record of scoring in 10 consecutive games.
His rise from non-league football has been widely touted, with many having labeled it as a miracle, but Wenger says his fine form is just a consequence of his quality.
“It’s absolutely fantastic,” he added.
“It is not a miracle, because that is a consequence of his quality. The miracle is that he played at Fleetwood and that he didn’t play in the Premier League before.”