The Brazil midfielder marked his return to first-team action with a stunning 30-yard strike in last week's Champions League win over Standard Liege at the Emirates Stadium.
And with Alex Song suspended, Denilson, who was sidelined for two months with a back injury earlier this season, will be handed the defensive midfield role.
Wenger said: "Denilson gives us a stability. Because we are a team that goes forward, we need to win the ball back in strong positions and he contributes to that.
"He’s a good passer and keeps it simple, which is always a sign of class."