Arteta was on loan at Paris St Germain from Barcelona in 2002 when the Catalan giants made it known they were willing to let him go permanently.
And the boy from the Basque country briefly contemplated a move to Tyneside as Sir Bobby Robson toyed with a bid for him.
In the event, Rangers came in with a £5.8 million offer for Arteta - who then joined Everton in 2005 - and Robson signed Hugo Viana, for an extra £2.7 million, instead.
"Newcastle were one of the clubs that asked very seriously about me in my time in Paris but finally Glasgow Rangers won the race," revealed Arteta to the Sunday Sun.
"I was interested in Newcastle. They are an historic club in England and their objective is always to be high up in the table.
"The atmosphere in their stadium is amazing and puts a lot of pressure on visiting teams. In that way, Newcastle is a very special place - it's never easy to win there."