According to The Sun, Iwobi was at "a drug-fuelled house party", and it has been claimed by the publication that other party-goers were smoking cannabis and inhaling laughing gas.
Reacting to the issue in Tuesday's press conference ahead of Arsenal's first-leg Carabao Cup away clash against Chelsea on Wednesday, Wenger said he will have a one-on-one with Iwobi. "It's unacceptable. I will have to see him and see if that is right or not".
"He is not involved in that at all, he has been out at a birthday party". "You know when you come back it was important not to make a mistake again - that's why it's disappointing because during the game, we repeated the same mistakes and that's where we were guilty today. You are responsible for your own actions, not your neighbours".
The former Middlesbrough manager was in charge at the Riverside Stadium for three and a half years and led Boro to the Premier League for the first time in seven years in May 2016.
Nigeria global Alex Iwobi was reportedly pictured partying at 02:37am in an apartment with friends in Soho, London, on Saturday morning, ahead of Arsenal's 4-2 FA Cup loss to Nottingham Forest on Sunday.
Wenger, who is now serving a three-match touchline ban for misconduct, expressed hope that his side will bounce back against Chelsea while reiterating his side's poor performance against Forest.
"Our objective is clear: we want to continue building this fantastic football club and lead it to a bright future".
"I believe we had an experienced team - eight or nine internationals. It's similar to what we saw previous year in the FA Cup".