Kolasinac, who arrived on a free transfer from Schalke this summer, has quickly grown into an influential figure at the Emirates. However, a hip injury suffered in Saturday's victory over Swansea City left him a major doubt for Sunday's trip to the Etihad Stadium – Arsenal's biggest test of the season so far.
The Bosnia and Herzegovina international scored a vital equaliser for his side against the Swans before providing the equaliser for Aaron Ramsey's winner, but had to be replaced with 12 minutes of the match remaining after picking up a knock.
The wing-back missed training at the start of the week due to the knock, but speaking at a press conference ahead of Arsenal's Europa League clash with Red Star Belgrade on Thursday, Wenger revealed his stricken defender has made major progress.
"Today he [Kolasinac] was much better, I think he will have a test at the end of the week," Wenger said. "He is not ruled out of Sunday's game yet but won't be involved tomorrow. But it is not as bad as we feared at the start."
David Ospina has been another recent absentee due to a groin problem, with Matt Macey standing in as Petr Cech's understudy in recent weeks. The Colombia international could also be in contention to return to the squad for the visit to the Etihad Stadium, but Callum Chambers, while having returned to training after a recent hip injury, is unlikely to be ready.
"Ospina and Chambers are both are short, Ospina maybe will available for Sunday, Chambers is back in full training but not fit enough to play," Wenger added.
The Arsenal boss also confirmed that Shkodran Mustafi has not recovered in time from a groin injury and will also miss the trip to Manchester, along with Danny Welbeck. Wenger confirmed both players remain on track to return after the international break, when they will meet Tottenham Hotspur in the first North London derby of the season.