Arsene Wenger yesterday gave a lukewarm welcome to the Russian billionaire Alisher Usmanov's purchase of a major stake in Arsenal by suggesting the club does not need major investment to compete at the top level.

The Arsenal manager does not share his friend and former vice-chairman David Dein's concerns over the club's ability to compete in the Premier League and Champions League. Usmanov's €111 million purchase, via the investment company Red and White, of Dein's 14.58 per cent stake in Arsenal has opened the door to the club falling into the hands of foreign owners.

Dein has said his decision to sell his shares, purchased for €432,202 in 1983, was born of a desire to ensure Arsenal can "compete successfully at the very top level". The landscape of the English domestic game has been radically altered by the arrival of investors like Roman Abramovich and Thaksin Shinawatra.

Wenger, who has in the past made clear his alarm at the motives of some foreign investors, insisted yesterday that Arsenal can compete at present. His decision to focus on nurturing a side via youth development should ensure they will be a force for years to come, regardless of whether a future takeover, by either Usmanov or the American major shareholder Stan Kroenke, makes yet more funds available.

"I believe I can compete because I have a team which I believe can win the Premier League and do well in the Champions League," said Wenger, aware that the club will announce impressive annual financial figures later this month.

"That's why I'm here. I feel, in the short term, I do not need more money. You have to see how the game's evolution is in the next four or five years. But, if I wanted to buy a player today, I have money available. I said that last week so, on today's basis, it's not a problem. Will I need it in four or five years? I don't know. Maybe it depends on how much money all the other clubs have and what the average salary is.

"But self-sufficiency should be any club's target. You cannot have a policy at the club that, every year, somebody puts £50 million (€74m) or £100 million (€148m).

"Prices are rising but will people continue to pump in £40 million (€59m), £50 million or £100 million every year without any natural resources or dividends paid back? I'm not convinced. You have to work with a club's natural resources. There is no other way."

Wenger will sign a contract next week to remain at Arsenal beyond the end of this season - agreement in principle has been reached on a decision unrelated to the political shifting in the boardroom. His stance on foreign investment has, however, mellowed since Dein's acrimonious departure from the board in April. Wenger's primary concerns now centre upon the intentions of those buying into the English game.

He will not have been reassured by Usmanov's insistence yesterday that his purchase was "not a strategic or political but a portfolio investment".

"I'm concerned with the intent of people coming in," said Wenger, who was aware that Dein would be selling his stake.

"If people have a sincere intent to improve the team and help the club, you have to see about that. I don't know. But in the end I am an employee of Arsenal football club trying to pay back the club for the faith they have in me by bringing success. What is happening up there is nothing to do with me. I'm not a shareholder and I don't want to be involved in a strategic struggle for shares because, basically, it's not my problem.

"Am I concerned that major foreign investment might affect the way we work here? Yes. There are many ways to work in the game. You can say you don't want any youth development at all and I'll respect that. If there are good players on the market, you go for them. But we've gone for a different solution and that's what we want to continue to do.

"It is my decision to go my own route. Everyone takes the route he wants. I do not judge them. We go this way. I feel we are strong enough to compete and that's what I want to show. At the end of the season it's either good enough or not and I accept that. My wish for who buys the shares means nothing. It's useless."