While he accepts City's wealthy Arab owners have blown the rest of the Premier League away with their signings, including Arsenal stars Samir Nasri and Gael Clichy, Wenger believes they will find it difficult to emulate his own Invincibles side's achievement of going unbeaten through a Premier League campaign.
"Financially it is impossible to compete with them," said Wenger, who has previously accused City of "financial doping". "But on the pitch it is possible.
"What is interesting in football is that we are playing a football game tomorrow night and it is important to compete with them.
"As long as they have not been beaten, then they could go unbeaten. It looks unlikely, but you never know.
"I think in the modern game you need a bit of luck - watching the game against Liverpool [on Sunday, City] could have been beaten. We want to get as close as possible to them and it's important to beat them."