The 25-year-old has been a regular in the Gunners’ back four so far this season, having seen a series of niggling injuries restrict his appearances for both club and country in recent years.
But Wenger believes Gibbs is now ready to make a sustained challenge for more international caps, following the retirement of Ashley Cole earlier this year.
Kieran Gibbs has been in good form with the Gunners this season
"Kieran looks to me that he's going into second gear now and he realises that he can trust his body, he can trust his talent," said Wenger ahead of Wednesday's Champions League clash with Galatasaray.
"He has such a great potential that now he just needs to let it go, because he can dribble as well."
There are parallels to be drawn between Gibbs and Cole too, with Wenger having overseen both players at the north London club during their formative years.
When Arsenal signed Lambeth-born Gibbs as a teenager from Wimbledon, he was primarily a midfielder and featured in that role in many of his early appearances for the England development teams.
But Wenger saw the potential in Gibbs as a full-back and given his previous record of converting Cole from a forward to one of the world’s best left-backs, it was not a surprise to see Gibbs’ emergence over the last few seasons.
He said: "When he arrived at the club he was 16 and he was a winger, midfielder, and I saw that potential didn't really come out so we always try to show him confidence."
"I saw he was intelligent and maybe I could transform him into a defender, it was a bit similar to Ashley Cole.
"I let Gael Clichy go because he [Gibbs] was a young, English left-back. That's the main reason I let Clichy go, I wanted to give him a chance.
Wenger helped to convert Ashley Cole into England's left-back during his spell at Arsenal
"Against Tottenham on Saturday he showed his personality to impose himself on the game and took the game by the scruff of the neck for a long period in the second half.
"That's what you want to see from him because all the talent is there."
And Wenger believes that if Gibbs continues to impress and stay clear of injury, he can force his way into Roy Hodgson’s thoughts and provide a real challenge to Leighton Baines and Luke Shaw.
"For a long time it was Ashley Cole [for England], no discussion, now it is a bit more open," he added.
"It is a good example [for Gibbs] to follow because Ashley is top.
"You see stories about Ashley Cole, but on the day of a game, when it mattered and when you had to be there, he was always there. You have to respect that."
Hodgson names his squad for the Euro Qualifiers with San Marino and Estonia on Thursday and you can still buy tickets for next week’s match at Wembley by clicking here.
Ticket prices: £25, £35, £45 & £55 (Family enclosure - £20 adults/£10 children under 16)
A £10 discount is available for OAPSs, students and U16s elsewhere in the stadium
Hotline: 0844 826 2010
Disabled sale hotline: 0845 458 1966
