Arsenal boss Arsene Wenger retains faith in the quality of his squad.

The Daily Mail says despite Saturday's loss to FA Cup opponents Blackburn Rovers, Wenger feels the majority of his squad are good enough to challenge for trophies next season. But the Frenchman has acknowledged privately his side lack the world-class talent needed.

When they missed out on David Villa last month, Wenger and chief executive Ivan Gazidis decided the club should wait until the summer to spend their £70million transfer budget.

Wenger said after Saturday's defeat: "I think we have a great team but this shows that we still have to show more maturity on the mental front."