Arsene Wenger rates Real Madrid as favourites for the Champions League this season but believes Arsenal's new Spanish influence will make his side a force to be reckoned with.

The Arsenal manager also claims Patrick Vieira's decision to stay at Highbury boosts his side's chances, while Manchester United's capture of Wayne Rooney makes them a greater threat.

Speaking after UEFA's elite club coaches forum in Nyon, Switzerland, Wenger said: "All the Spanish teams will be strong.

"Barcelona have a very good side this season. Real Madrid have strengthened their defence and they should be better at the back, and they have the players to compete at the highest level in the Champions League. I also respect Jose Antonio Camacho as a coach, he's very competent.

"But they have not got Patrick Vieira, for the simple reason he changed his mind at the last minute without any pressure from us or anybody."

Two of Arsenal's flourishing young players are Spanish - Jose Reyes and Cesc Fabregas - and Wenger brushed aside suggestions that Fabregas would automatically be the one to make way when Vieira returns.

"Fabregas can play with anybody," said the Arsenal manager. "We have four or five midfielders who are all very, very good and the ones who don't play can rightly feel sorry because for me they all have the qualities to play."

As for Rooney, Wenger is in no doubt the 18-year-old will have a major impact at United, saying: "Will United be stronger? Yes, certainly - and unfortunately, yes!"