The Gunners were set to sign the experienced French left back, but Arteta vetoed the move.
Paris United suggests that Arteta did not believe Kurzawa could help the team.
The move was originally engineered by the club's technical director Edu Gaspar.
But as he is the manager, Arteta is thought to have a very important veto on transfers.
The Kurzawa situation would be the first time that is exercised.