He has struggled to produce his best form for Juve, though, and was in December awarded the 'Golden Bin', given by fans to the worst signing of the season.
Wenger is aware of the difficulties Melo has encountered this season but he remains an admirer of the player, who lined up for Brazil against Republic of Ireland on Tuesday and is set to go to the World Cup this summer.
"We were interested in Melo last year," Wenger said in the Daily Telegraph.
"He has not had the season that everyone predicted he would.
"But we still think he is a very talented player. We are still looking at him."
Arsenal 1/7, Draw 13/2, Burnley 16/1