Elneny will help provide cover in an injury-hit area for Wenger, who has Francis Coquelin, Santi Cazorla, Mikel Arteta, Jack Wilshere and Tomas Rosicky all sidelined.
And according to the Daily Star, Wenger also wants a striker and has set his sights on Watford hitman Deeney.
Deeney signed a new five-year deal at Watford in the summer.
Wenger recently admitted he is looking to make two signings in the January transfer window.
"I want to talk about them and hopefully we are capable of doing something in the next 10 days.
"It's more about quality than quantity because our players will not stay out injured forever.
"Francis Coquelin is starting to run, Santi Cazorla will be back in mid-February, and Mikel Arteta is back now so, hopefully, if we can add one and, if needed, two maximum
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