Arteta, a former Gunners club captain, has a growing reputation after working alongside Guardiola in City's title-winning season.
"My opinion about Mikel is overwhelming," said Guardiola. "He deserves the best.
"We are so comfortable working with him. Part of the reason for our success this season was because Mikel is here.
"I know there are a lot of names for the next position at Arsenal but I don't know what their plans are.
"Mikel deserves all that he wants."