The Arsenal boss is under no illusions that drastic overhaul is required, and the Spaniard claimed: "The squad needs changing.
"There were already a lot of changes in December, something that has not been done in years, but it tells us where we were. Things are going to have to change and the owners are going to back it up."
Arteta has only been in the Emirates dug-out for just under a year and a half, not even halfway through his current Arsenal contract, but already faces speculation surrounding his future.
Speaking after his side's Europa League elimination at the hands of Villarreal, Arteta was asked if he still believes he is the man to guide Arsenal back to their former glories, to which he said: ""Yes".
"We know what has been going on inside here for the last 18 months, we know. We only know, the ones that are here. How we have built that is incredible."
Arsenal fans can expect plenty of movement in the window, but it appears Arteta will be a presence at the club for the foreseeable future.
The Gunners boss will be given the responsibility, alongside technical director Edu, to oversee what could be the most important transfer window for the club in decades.
Here is Wednesday's Arsenal transfer round-up, including an update on the future of Bernd Leno.
Arsenal change their minds on Leno
After choosing the German international over Emi Martinez in the summer, Arsenal fans would have been forgiven for thinking Bernd Leno would be in between the sticks at the Emirates for years to come.
However, according to reports from football.london, the shot-stopper could be one of a number of Arsenal stars up for sale in the summer.
Leno has enjoyed periods of great form for the Gunners, but the 2020/21 campaign has seen a number of uncharacteristic errors from the former Leverkusen 'keeper.
As a result, Arsenal could see Bernd Leno as one of their most profitable assets this summer, despite their number one being described as 'outstanding' by fellow teammate Kieran Tierney.
Arteta's side have been linked with Ajax number one Andre Onana as a Leno replacement.
Arteta eyes Lacazette replacement
Attacking options seem to be at the forefront of Mikel Arteta's transfer plans this summer, with a number of his current forwards out of favour and likely to leave.
One of these is Alexandre Lacazette, who could call time on a four-year stint in North London with a contract extension looking increasingly unlikely.
Eddie Nketiah is also likely to depart given the fact his current understudy Folarin Balogun has been rewarded with a new deal that ties him to the Emirates until 2025.
With Lacazette's departure seemingly imminent, Arsenal see Atletico Madrid loan forward Moussa Dembele as an ideal replacement despite his underwhelming statistics this season.
The 24-year-old joined Atletico Madrid in January on loan from French outfit Lyon, but he has failed to score in six appearances in all competitions for Diego Simeone’s side - finding the net just once in 22 games this season overall.
According to the Daily Telegraph, Arsenal are monitoring the striker's situation - with Arteta reportedly keen on Dembele from his time in Lyon, where he was far more prolific.
He is likely to cost the Gunners anywhere within the region of £25 - £30m.
Keen on Bertrand
Ryan Bertrand has caught the eye of clubs in the Premier League, Serie A and Ligue 1 with the full-back available on a free this summer.
Arsenal were left to regret their decision to not buy a back-up left-back for Kieran Tierney over the course of the season, having to use right-back Cedric Soares and midfielder Granit Xhaka in the left-back role when Tierney was side-lined with injury.
The Gunners were rumoured to be interested in Southampton defender Ryan Bertrand last summer, but a deal failed to materialise.
However, with the Saints full-back available on a free this year, the Gunners may see this is as the perfect time to bring the former Chelsea star back to London.