The Gunners dropped points against bottom of the league Wolves this week after throwing away a 2 goals lead in the second half.
This means title rivals Manchester City can cut the gap to just two points the evening before as they face a Newcastle United side without Bruno Guimaraes.
Do Arsenal need a rest?
Morgan, a huge Arsenal fan, spoke on talkSPORT about the club and how the squad look mentally exhausted as he suggested that a break is necessary.
"Here's my advice for Mikel. We have, unusually, in a massive season when we're in full competitions next week, a week off.
"We're not playing again until Chelsea the following Sunday. I want these guys on a plane somewhere warm on Monday morning until Friday.
"I want them to play zero football. They look completely mentally frazzled and physically jaded. Let's just give them a break.
"Take the pressure off them, put them on a beach, let them play beach volleyball like the pilots did in Top Gun which then led to them going wiping out the enemy by giving these guys a break.
"They just look like a coiled spring of tension, and I think that's what I saw last night."
Arsenal are next in action on Sunday for the North London Derby when they take on rivals Tottenham in a game where a win is imperative for Arteta whose title hopes are hanging by a thread.
Morgan added: "We have a perfect chance next week for a proper reset. Let's beat Tottenham, which should not be difficult, as they're one of the worst Tottenham teams I've ever seen.