The 67-year-old has delayed disclosing whether he intends to remain at the Emirates Stadium until after the international break at the earliest, despite announcing after last weekend's defeat to West Bromwich Albion that he had made a decision.
With Arsenal fans split over whether they want Wenger to stay at the club or leave, Merson believes that the long-serving manager will effectively usher in a period of transition over the next 12 months.
Merson told Sky Sports News: "My instincts tell me he's going to sign and he's waiting for a big win and he'll sign for another year.
I wouldn't be surprised if he stays a year and then Patrick Vieira comes in.
"He's learning his trade over at New York City, he's been at Man City, and he brings a winning mentality, he won't take any rubbish.
"Arsenal look too nice at the moment. I think that could happen and the fans would love that.
The players don't seem like they're working that hard for the manager at the moment, which is sad.
"Whoever comes in it's going to be a step-up - it's a big, big football club but I don't see a problem. He's a legend, which gives you some leeway. I just think he'll get his team playing the way he played the game, which is what they need at the moment."
Wenger has been in charge at Arsenal since 1996, but has only won two major trophies in the last 10 years
Not ready for me..
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