Not amused: Wenger has hit out City's move to land the Samba superstar
'It does not look real to me at all. It is like an abstraction,' said Wenger, who continues to pursue Russian playmaker Andrei Arshavin, but not at an inflated fee.
'It does not look in connection with today's world because on one side we have the economic situation which is quite worrying and for me this is abstraction. "We live in a football club who lives in the real world. That means we spend the money we make from our income.
DM.has("poll"); TODAY'S POLL
Is Brazil superstar Kaka worth a world record£100m fee?
Yes No VOTE POLL RESULTS CloseAll polls Click to view yesterday's poll results
'The implications would be disturbance on the market, an inflationary trend in a deflationary world.'
Wenger maintains the traditionally-prudent Gunners will not break the bank to aim to compete with the spending power of City.
'It leaves Arsenal where we are. That means we spend the money we produce and we make,' he said.
'We are in a world where we live from three kinds of income - gate receipts, the sponsors and the television money. That is the real world of football.
'The rest is exceptional and is not the rule of our world. It is a special income with unlimited resources, but it is not the real world.
'Whether it is us, Sunderland or Coventry we live with the same rules. Manchester City are in a different world because they do not live with their income.'
Scroll down for more
Decision time: Kaka has plenty to think about
Wenger insists he does not cast a jealous eye over the goings on at Eastlands, as the French coach considers what moves to make in the transfer window.
'I am more concerned with what to do to win the next game rather than how to spend£100million,' he said. My purpose is to develop the team on a daily basis and to think how we can improve.
'For me what is interesting is being on the football pitch in the morning and trying to see how we can develop as a team.'
Wenger added: 'I never felt like that [envious]. You can ask all the clubs where I was, I never renegotiated any of my contracts.
'Once I sign, I am happy with what I do and I try to give my best for what I have signed.
'Never in my life have I had that - I have never asked another manager how much money he is making, I have no interest in that.
'I enjoy what I do and try to do it as well as I can.'
Reports in the Middle East that City had withdrawn their bid have been dismissed by boss Mark Hughes.
'I've seen these reports but you have to bear in mind that the people who are being given a platform to speak do not represent the owner (Sheikh Mansour) or (chairman) Khaldoon (Al Mubarak),' said Hughes.
'In my opinion they should not be given a platform to say what they have because in this instance it is completely untrue because negotiations are still taking place.'
Hughes assistant, Mark Bowen, said the deal was 'very close'.
Manchester City boss Mark Hughes insists£100m Kaka chase is still on
Let's Sheik on it: Kaka to meet Mansour as Milan accept City's£100m for Brazil star
MARTIN SAMUEL ON KAKA: Let's not deride Manchester City for this dizzying bid
Kaka, a gift that Manchester City's Sheik can't resist
Kaka video special:£100m - why the Brazilian star is worth every penny
What they're saying in Italy - How news of£100m Kaka bid rocked the Rossoneri
MANCHESTER CITY FC NEWS FROM ACROSS THE NET
ARSENAL FC NEWS FROM ACROSS THE NET