Wenger spent 22 years in charge of Arsenal, winning three Premier League titles and seven FA Cups to become the Gunners’ most successful manager.
One of Arsenal's title triumphs under Wenger came in an unbeaten 2003/2004 season.
Wenger also presided over Arsenal’s transition from Highbury to the Emirates Stadium in the summer of 2006.
The 73-year-old Frenchman’s tenure in North London came to an end five years ago and he was replaced by Unai Emery, who has since left, with Mikel Arteta taking his place.
Arsenal executive vice-chairman Tim Lewis told the Gunners’ website: “We’re delighted to recognise and celebrate Arsene Wenger’s outstanding leadership and career at Arsenal Football Club.
“Arsene’s contribution to, and achievements with, the club mark him out as the club’s greatest manager.
“He treated the club and its supporters to many trophies and fantastic memories and brought a revolution in the running of the club, an unbeaten season and the move to Emirates Stadium.
“It is fitting, therefore, that as a mark of the club’s enduring respect and gratitude a magnificent statue of Arsene now stands outside Emirates Stadium.”
Arsenal boss Mikel Arteta, who was signed as a player by Wenger in 2011, said: "It's such a great tribute that the club has done something special for Arsene that he fully deserves and merits.
"With a statue now at the stadium, Arsene can have that recognition and be here at our club forever.
"He chose me to be one of his players and selected me to be the captain of the club and that's something I will never forget."
Other club legends with statues outside the Emirates Stadium include Thierry Henry, Dennis Bergkamp and Tony Adams.
