The shock departure of vice-chairman David Dein, Wenger's closest ally on the board, led to speculation the Frenchman could be set to follow him out of Emirates Stadium.

However, Wenger, 57, fully intends to honour the remainder of his contract, which runs until the summer of 2008, with the club keen to extend that deal sooner rather than later.

The Arsenal manager, however, continues to "live on short-term", and is determined to get his squad back to the levels reached at the turn of the century when they were the dominant force of the English game.

Wenger said: "I want to develop this team because I feel there is a lot in there.

"I need one more year, and after one more year I can assess how far I can push this team.

"We have agreed to speak about it [future] the end of the season. At the moment I do not even think about that. I am too much in the competition.

"I have over one year to go and I want to finish work this season.

"I live on short-term. I have done it before."

Wenger added: "I feel it is important that I focus on how far I can go with this team and continue to respect the values I have tried to develop since I arrived here.

"And I will continue to develop next year."

Arsenal head into tomorrow's game with relegation-battlers Fulham looking to cement another top-four finish in the Barclays Premiership.

Wenger accepts securing a place in the Champions League season after season is the "minimum" requirement for their club.

However, there is no doubt a campaign which promised so much following the move to Emirates Stadium ultimately failed to deliver, despite an appearance in the Carling Cup final with a youthful side.

Wenger has, though, seen enough to remain confident of the prospects for next season.

"I feel we have shown that we have the quality to be at the top, and what we have to show is that we have the mental toughness and determination to be at the top," said Wenger, who was robbed of key men like captain Thierry Henry and striker Robin van Persie through injury.

"There was no better test than going out of the Champions League. You could see - do we crumble now, do we fall completely, let it go?

"I learnt a lot about the players. They did stick together. They were very successful in the first test. They showed that in adversity they can respond.

"What we have to show now is to be consistent in our determination.

"This season we have shown we can beat Manchester Utd, we can beat Liverpool, we have drawn at Chelsea and I am confident we can beat them at home - but what we have also shown is that we can lose at Sheffield United and Manchester City."

Arsenal are set to bring in someone to fill the chasm left by Dein's departure in the form of a new director of football.

Wenger will have the major input on the appointment, which will be crucial to the "stability" of the club.

"I was very happy with the organisation and the way we worked together," said Wenger.

"At the moment it just needs to be adjusted because I have to fill in.

"It is good that we do not have so many games or many players at the end of their contracts. I just had to do [Jens] Lehmann - and it is good that we do not have £200m to spend."

Wenger added: "We are in an intermediate situation and have to find a new balance within the club without losing our stability.

"The only thing I could do is explain to the players what happened and reassure the players that I am committed to respect my contract."

Chairman Peter Hill-Wood has promised funds will be available to the manager in the summer should he need them.

Wenger maintains he will only bring in "super class" players to the squad, which he feels is not short of becoming title challengers again.

The Arsenal manager said: "I need to analyse how good the team would be with Henry and van Persie back and [William] Gallas completely fit. Then I will see what is really needed."