Wenger eventually signed a new two-year contract extension following an end to a campaign which finished on a high with victory in the FA Cup final after failing to secure Champions League qualification for the first time under his long tenure.
The 67-year-old Frenchman was in central London on Wednesday night attending a Football Writers' Association Live event which raised money for the London Fire Relief Fund, set up in the aftermath of the Grenfell Tower fire.
During a wide-ranging panel discussion, Wenger took questions from the audience and was asked directly if the negativity from some sections of Arsenal fans over his future had filtered through to the team's performances on the pitch.
The Gunners boss replied: "I had an impact on the season, because at some stage the players came to see me and said: 'What's going on boss? Where do you go?'
"I created, with me not deciding, a lack of clarity in the dressing room and there is nothing worse than that in the dressing room.
"When you are not completely in or the players feel you are not completely in, it is difficult to tell them we go (out to win).
"At some stage, I had to tell them, 'Look guys, I am with you, but we have to win games'."
Pressed by Gary Lineker whether he genuinely did not know until the latter stage of the season whether he knew he would be staying or not, Wenger said: "No. I had not decided to stay or to go.
"It created uncertainty in the dressing room and then when you don't win the game, you know... there were some other problems."