Wenger admires the success achieved by McDermott, a former Gunners midfielder, on a limited budget and believes he has the skill to keep the Royals in the Barclays Premier League. Last season's npower Championship winners have yet to win in the league, but are one victory away from a place in the Capital One Cup quarter-finals.
"Reading have made appointments from within the club well over the years," Wenger told Arsenal Media. "You have to congratulate Brian McDermott for promotion last year, I believe he made a miracle basically."
He added: "When you get to the Premier League, the level of expectation is to stay and I feel they have a chance. McDermott has the qualities to achieve that.
"We expect a challenge and we know Reading will give absolutely everything when they play against us.
"Reading have done very well in their scouting. They are one of the examples of a club not spending money and living within their resources.
"I always respect that. There is some quality work behind their success."