The loss and City's next win at Burnley saw the Gunners surrender the Premier League lead with five games to play.
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Rather than step up training, manager Mikel Arteta decided to grant his players two days off.
Arsenal meet Newcastle United this weekend before attention turns to Atletico Madrid.
With Manchester City meeting Southampton in the FA Cup semifinal, Arsenal can retake the Premier League leadership with a win or draw against Newcastle.
It's understood the break has been particularly welcomed by midfield pair Declan Rice and Martin Zubimendi, who have been managed through recent games due to their workload.