The north London side lost 3-0 to Premier League leaders Manchester City in the League Cup final at Wembley last weekend.
The humiliating defeat heaped further pressure on under-fire Wenger with Arsenal languishing in sixth place in the Premier League table.
Conte has also been contending with speculation surrounding his future after a number of reported fallouts with the Chelsea FC board.
The former Juventus boss led Chelsea FC to the Premier League title with two games to spare in his first season in charge at Stamford Bridge.
Chelsea FC have been linked with a potential move to appoint Barcelona’s treble winner Luis Enrique.
Former Spurs boss Sherwood believes Conte would be a great appointment for Arsenal to replace Wenger at The Emirates.
“For me, it would be very attractive,” Sherwood told Sky Sports. “If I was in charge of Arsenal I would give him the job.
“He has done a magnificent job to take that team from tenth place to the Premier League title. I like his character.
“He is a contrast to Arsene Wenger. I really think it’s what Arsenal need.”
The Gunners suffered a humiliating 3-0 loss to Premier League leaders Manchester City in the League Cup final at Wembley last weekend.
Arsenal failed to test Pep Guardiola’s side in a disappointing performance to heap further pressure on Arsene Wenger.
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