The Gunners spent £149million last summer, bringing in the likes of Ben White and Aaron Ramsdale, who quickly became regular starters.
On the budget for the upcoming transfer window, Arteta admitted: "We are going to have certain resources, not unlimited resources, and with the resources we have to play and do what we have to do in the best possible way.
"We don’t know what the rest will have but obviously it will be challenging because now it is not a top three, it is a top eight, but that is why we have to find a way to do again what we did last summer.
"I think the market as well is going to have a big implication there. I don’t know how the market is going to act, what the prices are going to be and what we’re going to be able to do.
"Obviously there is no question that playing in the Champions League it is easier to attract players, easier financially, so there are pluses."
Additional reporting from PA