Iwobi was sold to Everton in 2019 in a fee worth around £30million after failing to nail a starting shirt with the Gunners.
The Nigerian international before his departure away from the London club had netted 15 goals in 149 appearances for Arsenal.
Reacting to a question from Metro Uk on the sale of Iwobi to Everton, the Atlanta Olympic gold medalist, stated that it was a big mistake for the club to have allowed Iwobi to leave the club.
“I was surprised they let Alex Iwobi go when they did,” Kanu, speaking to Ladbrokes at its launch of the 5-A-Side Bet on Arsenal v Everton, said, according to Metro UK.
“He was supposed to be a part of this team and I think they’d be a better team with him in it. He’s Arsenal blood and he’s always given his all for the team.
“He plays at an international level. I believe he’d be much more comfortable in this Arsenal team than he is in the Everton team.”