"I have bad news for you - I'm leaving the club at the end of the season," Wenger is said to have told his players.
According to Daily Mail, Iwobi and his fellow Arsenal players were left in tears after the manager's speech.
The players, the report said, were stunned and quiet before captain Per Mertesacker stood up to address them.
Iwobi and his teammates who are still soaking up the news have taken to social media to pay tribute to the manager.
Players react on social media
"For Everything You've Done For Arsenal Football Club, For Trusting Me As A Teenager, For Giving Me The Opportunity To Express Myself And Grow Both As A Footballer And As A Person, I Will Forever Be Grateful To You Boss. Thank You So Much," Iwobi said on Instagram.
"To the man who gave me my chance as a 16-year-old, and showed unbelievable faith and commitment towards me. Always a gentleman, like a father through tough times in my career. He always believed in me when most people didn't. Thank you for everything boss! It's down to us now," Jack Wilshere also took to social media to say. https://twitter.com/JackWilshere/statuses/987306961602535424
"Personally a very sad day. I am forever in debt to this man. The person who had faith in me and gave me a platform to progress. Thank you for all the memories and trophies boss," Hector Bellerin also said. https://twitter.com/HectorBellerin/statuses/987305656637181952
Former Arsenal player Cesc Fabregas whom Wenger signed as a teenager from Barcelona also paid tribute to him.
"Wow. I never expected that but it shows the great dignity and class of the man. I will never forget his guidance and support, his tutelage and mentorship," Fabregas said.
"He had faith in me from day one and I owe him a lot, he was like a father figure to me who always pushed me to be the best. Arsene, you deserve all the respect and happiness in the world. Class act."
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