Arteta had no funds at his disposal in January and will have to operate under strict measures for a second successive window after the Arsenal board informed him of their available finances.
Mikel Arteta will be forced to invest wisely in the transfer market after being told his budget for the upcoming window.
The Arsenal boss was unable to make any permanent signings in January due to the club’s huge financial outlay on transfers last summer.
Pablo Mari arrived on loan, Arteta has already signed off £10million to keep him at the club long term.
A £27m deal for William Saliba has also been completed but that was agreed by former manager Unai Emery.
Now Arteta will have to accept he is braced for another difficult window as ESPN report he will be given just £30m to spend.
That figure could be increased slightly if Arsenal qualify for the Europa League by winning the FA Cup final.
However Arteta will only get further funds to spend if he is able to raise cash from the sale of current stars.
He said recently: “I know that the situation that we have at the club and the context that we are in, but the club knows my plan.
“In January, the situation was that we had to fill some gaps and give some stability to the squad.
“Now is the moment to make another step forward and improve the squad and the players that we have.”
Much of Arsenal’s budget could be used up on making Dani Ceballos’ loan move permanent, with the midfielder valued at around £23m by parent club Real Madrid.
That could pose a problem for Arteta if captain Pierre-Emerick Aubameyang fails to sign a new contract at the club.
The 31-year-old is already into the last year of his current deal and is reportedly holding out for an approach from Barcelona.
Due to the limited time left on Aubameyang’s contract though Arsenal would struggle to command a big fee for their talisman, and would find it hard to replace him and strengthen in other areas.
Atletico Madrid’s Thomas Partey is a key target for Arsenal, but there is little chance of them landing him for anything shy of £50m.
Getting Mesut Ozil off the wage bill would free up some cash, but the German seems insistent on staying at the club until the end of his contract next year.
In any event, ridding themselves of Ozil would not generate a fee as potential suitors are already aware of Arsenal’s desperation to sell the midfielder.