Arsenal are in talks with Real Madrid to keep midfielder Dani Ceballos.
Now Arteta appears convinced of his potential for the long-term.
“Yeah, we are talking to the club,” Arteta said when asked if he was aiming to retain Ceballos’s services.
“Obviously we don’t own the player, he’s not in our hands so the clubs will need to have a communication and see what we can do.
“I’m really happy with him, the way he’s evolving, and I love how much he likes to play football – the passion he puts into every training session and every game, you just have to see his celebrations.
"I think he’s evolving in the right way and he’s becoming a really important player for us.”
Ceballos’ deal in Madrid runs until 2023, but Los Blancos are open to cashing in on the former Real Betis man.
Arsenal ’s financial situation means that they need to be creative in the market the summer however - potentially with player exchanges.
Arteta admitted: “We have to be open to different situations. And I think the market will give us the opportunity to do certain deals like this [swaps] but at the moment I cannot comment on any of that.”
The Gunners face Leicester City on Tuesday night, as they look to claim a fifth straight success, following the 2-0 weekend win at Wolves.