"They're in a position now where someone like him has got to go there and really pull up trees to get Arsenal back to where they need to go", he said, referencing the fact that the Gunners may see both Alexis and Mesut Ozil leave on Bosman deals.
However, former Chelsea midfielder Wise doesn't believe Mahrez would consider a move to Arsenal given the Gunners' struggles in the Premier League.
"I don't think Mahrez would want to go there", he told Sky Sports.
Some reports even suggest Liverpool are already in talks to sign the Algeria international. If Arsenal are the only team above the top six, of course he'd go to Arsenal.
The 26-year-old was desperate to leave the King Power Stadium at the end of the previous campaign, but he eventually had to stay put after the Foxes failed to receive any suitable offers.
Arsenal are in sixth spot in the Premier League table and five points adrift of Liverpool FC, who occupy the final Champions League qualifying spot.
It should be noted that on that occasion - 1936-37 - City won the first of their four top-flight titles.