Ryo made his return from injury in the Reserves' defeat to Sunderland on Wednesday and Wenger reiterated that he has not yet made up his mind on the 18-year-old's future.
"The Ryo situation is that he is back from injury and has played for the Reserves the other day," said the Frenchman to arsenal.com. "He is doing very well.
"He had a period after pre-season where he just had a dip and I think the injury came at the right moment for him to recover.
"He looks sharp, but what I will do with him I do not know yet. Will I get him to play somewhere or will he play for us? I have to make my mind up in the next three weeks."