The former Valencia defender joins the club in a £35million deal after putting pen-to-paper on a five-year contract.
A move for the 24-year-old has been in the pipeline for weeks but Wenger will be delighted to get the deal done and bolster his depleted back four.
Speaking to Arsenal’s official website, the manager said: “He is at the right age. He has good experience. He is a very focused player who can play with the ball as well.
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"We have taken a great player but have prepared well for the future."
The deal means the total Premier League spend in this summer's transfer window has now toppled a staggering £1billion.
Mustafi becomes Arsenal's fourth major summer signing alongside Perez, Granit Xhaka and Rob Holding.
The move also sees Calum Chambers head to Middlesbrough on loan in order to gain first team football.
Arsenal are likely to have a quiet transfer deadline day on Wednesday but the future of Jack Wilshere is still in doubt.
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