The Ivory Coast international has been linked with a £35m (€39m) switch to the Gunners (The Sun), with Wenger having identified him as a possible replacement for Alexis Sanchez.
Sanchez is expected to leave Arsenal either in January or in the summer when his contract expires. Manchester City remain the most likely destination.
Zaha has recently shown shades of the form that saw him win a move to Manchester United in 2013.
Yohan Cabaye has described the ex-England international as an "important" figure at Selhurst Park and though Morrison does not want to see Zaha leave, he expects he would thrive under Wenger.
"It will be disappointing if Palace lose him but if they get relegated, Wilfried Zaha is a Premier League player," he told AskFans.co.uk.
"Over the last year and a half, how his game has come on to a different level is unreal. He could probably add more goals to his game and I think going to work under someone like Arsene Wenger - he'd only become better.
"But I hope he doesn't leave. I hope Palace stay up and they can build the team around him. In the summer he signed a long-term contract and Crystal Palace is his club. He loves it."
Wenger has been scouting Porto's Yacine Brahimi but believes Zaha represents a more viable option to replace Sanchez due to his top-flight experience in England. Arsenal's move for the winger could intensify after they completely withdrew from attempts to sign Monaco's Thomas Lemar, though Lyon's Nabil Fekir is also a target.
One factor that could influence Zaha's decision is his allegiance to Arsenal, who he overlooked to join United four years ago. But having signed a new five-year deal in the summer his immediate future appears to be in south London.
Though Palace remain bottom of the Premier League and six points from safety, Zaha's exploits since his return from injury have given Roy Hodgson's side a fighting chance of beating the drop.
Morrison expects his former side, for whom he scored 112 goals across two spells, to stay up, but stresses that the January window will be a pivotal period for the club.
"I predict they finish 16th or 17th," he added. "January is crucial for Crystal Palace Football Club. They need [Christian] Benteke back to link with Zaha and they need to bring in more strikers, more attacking players and hopefully start winning games again."