Dein, 63, has left the club due to "irreconcilable differences" and will cease to be a director with immediate effect.

However, the former Football Association vice-chairman holds around 14% of shares in the parent company of the Gunners, estimated to be worth around $AUD32,000,000.

A statement from Arsenal chairman Peter Hill-Wood read: "On behalf of the board I would like to express our gratitude to David Dein for the many years of loyal service he has given to the club.

"We sincerely regret that irreconcilable differences between Mr Dein and the rest of the board have necessitated a parting of the ways."

Those differences are understood to be over the direction and ownership of the club, with Dein known to be very much in favour of the involvement of American billionaire Stan Kroenke, which put him at odds with Arsenal director Danny Fiszman and also Hill-Wood.

Speculation continues surrounding a potential takeover from American-based Kroenke Sports Enterprises, who recently bought just over an 11% stake in the club - which included a small holding purchased indirectly off Fiszman, who maintained he was unaware of the buyer.

Hill-Wood, however, maintained the board would be "horrified" to see complete ownership move across the Atlantic.

Should the KSE group - which has interests in several successful sports US clubs - obtain a 30% threshold in Arsenal, then under the Stock Exchange rules, the American tycoon would be able to launch a takeover bid of the Barclays Premiership outfit.

However, tonight's statement from Arsenal continued: "In light of recent speculation with regards to the ownership of the club, the remaining board members, who together own 45.45% of the issued share capital of the company, would like to reassure the supporters, shareholders and employees of Arsenal Football Club that they remain long-term holders of their interests in the club.

"To this effect, they have entered into an agreement not to dispose of their shares for at least one year and have confirmed that they intend to retain their interests on the expiration of this period."

Dein - currently the chairman of the G-14 group of elite European clubs - was behind the appointment of the then little known French coach Wenger to the manager's job in 1996.

The pair remain close friends, with the Gunners having enjoyed unprecedented success in the last decade with three Premier League titles and four FA Cup wins.

Wenger, 57, is out of contract in 14 months time, and as yet no formal talks have opened over extending his stay.

The Arsenal boss insisted it was business as usual following the news of Kroenke's investment.

Whether that stance continues following tonight`s news remains to be seen.

Wenger said earlier this month: "It is just somebody who has bought shares. You have to wait in the future to see what his intentions are.

"At the moment, he has come out and said he does not want to buy the club, he wants just a partnership and that should not change anything inside the club at the moment.

"At the moment, 60% of shares are in the hands of three people and he has just put 10%, so that means nothing will change for us.

"10% of shares have moved from one pocket to another, but that does not change the life inside the club nor would it affect the area where decisions are taken."

Wenger added: "It is important Arsenal maintains its values because they are what makes the club so popular and that is beyond any investment.

"The values are a bit of human class, distinction, respect for people and ambition to have a certain class in what you do.

"That is what I felt when I came inside this football club - there was fair play, a desire to do things well and basic human values.

"It is a daily struggle to keep those values and they are not only decided by foreign investment because you can have bad English people as well who go the wrong way.

"What I like inside at this club is that we have maintained our values, we show we care about our fans and we care about people who love the club.

"There is a desire to have a certain level of attitude and behaviour at this club that makes you feel comfortable."