Following a very disappointing Premier League campaign, Arsenal have missed out on qualification into the Champions League for the first time in over two decades and the Gunners will most certainly have to strengthen their squad over the summer in order to make a return to Europe's elite club competition next season.
But the former Liverpool star believes that the North London side will remain stingy when it comes to splashing the cash on new players this summer despite the need for improvement.
"They have shown this time out that they haven't got a squad to qualify for Europe's major cup competition and if they are minus Alexis Sanchez then I can see it getting really messy next term," Collymore told The Mirror.
"They should be trying to gazump Manchester United to get Antoine Griezmann, but can you really see them doing that? I certainly can't. And if they're falling behind their Premier League rivals then it's even worse in the Champions League, where the Gunners are miles off Bayern Munich, Barcelona and Real Madrid.
"While Wenger is there, though, I'm afraid that won't change. Which is why today is the day to say, 'Thank you, Arsene', to give him the bells and the whistles, and all the love he deserves. Then it's time for one of our great clubs to wave him on his way, or upstairs at least, so it can start moving forward again."