The Gunners signed Sanogo from Auxerre in summer 2013 as an interesting prospect for the future but the 21-year-old striker has since struggled to make the impact expected at the north London club.
After failing to score a single goal during his debut campaign at the Emirates Stadium, the Frenchman finally broke his duck for the Gunners earlier this season with a Champions League strike against Borussia Dortmund.
But with both Olivier Giroud and Danny Welbeck ahead of him for the number nine role, Wenger has decided to send him out on loan to continue his development.
On Tuesday 13 January the club confirmed an agreement with Crystal Palace to loan the striker to Alan Pardew's side until the end of the season.
"Look, Sanogo needs to play," Wenger told Arsenal Player.
"For me, he needs to play in the Premier League. Then we'll know much more about him. I think he's ready - it's a very interesting challenge for him to have that responsibility. It's part of the development of the player."
Meanwhile, on 14 January, Arsenal confirmed Afobe had joined Wolverhampton Wanderers on a permanent basis even though the starlet excelled at MK Dons during the first part of this season, scoring 19 goals in 30 games, including a brace against Manchester United in the League Cup in August.
"Benik has made a name through his performances and he is now rewarded with a move to Wolves," Wenger said.
"I believe that it's very interesting for him as well. He deserves it. We like him very much here and I'm happy that he got the chance."
Earlier in January, Germany international Lukas Podolski left the club to join Inter Milan on loan until the end of the season.