Wenger is one of only two Premier League managers guaranteed a place in the knockout stages of Europe's premier competition, with the 2-0 victory over Montpellier on Wednesday night ensuring they joined Manchester United in the last 16.
But Wenger, who has guided Arsenal from the group stages for 13 consecutive years, said: "I don't think we are getting worse.
"Maybe we have less room, less margin, than we had before when it was just a question of when we would qualify. Now German football has come up, Spanish football is there every year and some French clubs have come back like Paris
Saint-Germain.
"It looks less obvious for us. "But I still think England is the best league, because there's something more here. It's not only linked with what you see on the pitch but how you experience football. And when I speak to the players they say exactly the same."
While City and Chelsea have paid millions in a bid to achieve the ultimate prize, Wenger and Arsenal have been criticised for their wage ceiling, prudent approach and dedication to the Academy. But despite failing to lift a trophy for seven years, Wenger's achievements in the Champions League still give him satisfaction.
Arsenal will announce the first in a series of major new sponsorship deals on Friday but Wenger is still reliant on success each year in Europe.
He said: "It is massive for us because I am so many times with my back to the wall, accused of not spending fortunes. To show that we can do it, with the way we do it, with the club in a good financial situation and with the players coming from our youth development, I think it is important for the game as well. There are many different ways to be successful and I am very happy that our way is one of them."
Wenger, meanwhile, has claimed Manchester United will be "destabilised" when Ferguson ends his reign as manager at Old Trafford, regardless of who is appointed to succeed the Scot.
Ferguson, who passed the 26th anniversary of his arrival at United from Aberdeen earlier this month, is due to have his achievements at the club marked by the unveiling of a statue in his honour at Old Trafford on Friday.
With Ferguson due to celebrate his 71st birthday next month, the guessing game over his retirement plans has led to speculation linking both Pep Guardiola and Jose Mourinho to the United job when Ferguson ultimately announces the end of his managerial career.
But Wenger, whose rivalry with Ferguson dates back to his arrival in England in 1996, believes that United will find it impossible to replace the man who has delivered 12 Premier League titles and two European Cups to Old Trafford.
"I don't remember anybody else being at the top, top level for such a long time." Wenger said. "I think, of course, it is a fantastic thing — you can't even describe the achievement unless you know what that means.
"In some ways it is scary as well because you think when this guy leaves the club, no matter of the quality of who comes in after him, it will be a huge hole.
"The club will be destabilised even if the guy who comes after him is top quality, because the print of everything, the life of everything, revolves around Ferguson so much at Manchester United. He has to be immortal so the club doesn't suffer!"
Having clashed on numerous occasions with Ferguson during Arsenal's status as United's closes challengers in the late-1990s, Wenger's relationship with his old rival is now less combustible.
And he admits he admires Ferguson for his ability remain at the top of the game after so long at Old Trafford.
"His commitment is always there, you never feel that his commitment is weakened." Wenger said. "His demanding attitude towards his team is never weakened, his passion for the game has never weakened and that is something you have to admire because you could think, OK he's done so much, he can take it a little bit easier.
"What I admire maybe the most in him is his forward-thinking. He is always ready to move with the times and never speaks about what he has done before.
"He knows when to renew the team, when you have to make changes, and that is exceptional because you can sometimes be a little bit lazy when you have so much success.
"He's never been like that, he's always on his toes and he can renew what is needed, when it is needed.
"It is a job where you need to dedicate your life to football and Ferguson has done that and that deserves massive respect.
"He has won absolutely everything and, of course, that is something exceptional."
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