The Gunners boss is keen to sign a holding midfielder to provide competition for Alex Song and has now set his sights on the Rennes star.
M'Vila, who has established himself as a regular in the French national team over the past 12 months, would cost around £10 million, reports the Sunday Mirror.
Bringing in Scott Parker from West Ham United would be a cheaper option and provide Arsenal's youthful midfield with some much needed experience.
However, the frugal Wenger has doubts about whether paying £8 million for a 30-year-old with no resale value represents a good financial decision.
Instead he will test the water with a bid for M'Vila, 21, although Rennes are known to be reluctant to sell the rising star.
Wenger again faced calls from fans to spend some money during Arsenal's 2-0 home defeat to Liverpool on Saturday.
It is thought he will move for Blackburn centre-back Chris Samba or Bolton defender Gary Cahill in the next few days, while Marseille have confirmed the Gunners are keen to sign Argentina midfielder Lucho Gonzalez.
Any further spending may depend on whether Samir Nasri's proposed £22 million move to Manchester City goes through.
A French television station reported on Saturday that the transfer had collapsed, but City officials remain confident of landing Nasri.
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