Smith Rowe has been the subject of two rejected bids from Villa, who identified the 20-year-old as their primary target to fill the No.10 position.
Speaking after Arsenal’s 2-1 friendly defeat at Hibernian on Tuesday night, Arteta insisted the attacking midfielder - who has been in discussions over a new contract - was going nowhere.
“Without a question. Yes. He (Smith Rowe) will stay here. 100 per cent,” said Arteta, before refusing to comment when quizzed on Villa’s offers, the second of which totalled around £30million.
Villa had been weighing up a third bid for Smith Rowe but increasingly it appears will turn their attention elsewhere.
Boss Dean Smith has placed a priority on boosting his attacking resources this summer and the club have already broken their transfer record with the signing of Emi Buendia from Norwich for an initial £33m.
Veteran winger Ashley Young, who has returned to the club a decade after leaving, is Villa’s only other signing of the window so far.