The German international picked up the injury during the 3-1 victory over Stoke at the Emirates three weeks ago.
After the clash, Wenger revealed Mustafi was unlikely to return until the new year after he limped out of the action in the first half.
But speaking at his weekly press conference the Gunners boss confirmed Mustafi is back ahead of schedule and will be in the squad this weekend.
“I don’t think that Gibbs will be available,” he said. “Apart from that Mustafi is fit again and we have one or two uncertainties with flu.
“Walcott has a calf problem, I don’t think he will be available for Sunday. Welbeck is fit, he is sharp.”
Mustafi took to Twitter to express his disappointment at the injury blow but vowed to return stronger.
He posted: “Very bitter injury at that point of the season. I’ll do everything I can to recover quickly and come back stronger than before.”