Welbeck joined the Gunners from Manchester United for 16 million pounds ($26.00 million) on transfer deadline day, after United manager Louis van Gaal signed Colombian forward Radamel Falcao on a season-long loan.
"I was happy to take a permanent transfer with Danny Welbeck," Wenger told reporters. "He is ideal because when you analyse his game he can play through the middle -- I think his best position -- but as well on the flanks."
Welbeck, who had become fifth-choice striker at Old Trafford under Van Gaal, scored twice to lead England to a 2-0 win over Switzerland in their Euro 2016 qualifier on Monday.
Wenger said: "Welbeck brings quality and a team attitude and, as you can see with England, his goalscoring.
"I cannot tell you if Welbeck will start (against City) but it's a possibility. I have to assess the squad. Welbeck is young and I feel he can improve his career here -- he is confident."
Welbeck backed himself to succeed at the Emirates when he told British media on Thursday: "Once I get into the box and get the opportunities I have got faith in my ability.
"Before (for much of his time at United) I wasn't getting into the box because I wasn't playing too much as a striker and I had to worry about my defensive work.
"Once I get the opportunity and a run of games up front I will do my best."
Welbeck is likely to start against City, as Wenger needs cover for injured French striker Olivier Giroud.
Saturday's game at the Emirates is an early season chance for Arsenal to test themselves against the English champions.
"Saturday is a good opportunity to show we have grown as a team and we are ready for the fight," Wenger said.
The north London club -- seventh in the Premier League after three games, one point behind fourth-placed City -- have been boosted by the return to fitness of Mesut Ozil, Kieran Gibbs and Mikel Arteta.
Aaron Ramsey, who suffered an ankle injury playing for Wales against Andorra in midweek, also has a "chance" of making the City game, according to Wenger.
(Writing by Stephen Wood, editing by Ossian Shine)
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