The right-back’s current deal expires at the end of the season and the north London club have been in negotiations with the France international over his future for some time.
Wenger has made no secret of his desire to keep the 30-year-old at the club beyond the end of the season.
But the Gunners boss concedes that an agreement is still some way away.
“We are always in negotiations with him and we always try to be fair with our players,” said Wenger.
He’s fantastic, he’s not only a great player but has a fantastic attitude
“When I say I expect [him to stay], it’s more that I want [him to stay]. I hope that in the end I am right. We are not close at the moment.”
Wenger continued: “He’s fantastic, he’s not only a great player but has a fantastic attitude.
“You know when you start the game that Bacary Sagna will give you 100 per cent commitment and, no matter where you play, against whom you play, he will just commit 100 per cent. That is a fantastic guarantee.
“I believe that his future is here and any other decision would be wrong.”
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news