Earlier this week, the club’s record signing left the Emirates Stadium and moved to French side Nice on loan, bringing an end to an Arsenal career that never really got going.
Still, while Pepe was never likely to command much of a first-team berth, Arteta is eager to bring in a winger to further strengthen his squad.
Wolves star Pedro Neto is a leading target but there are fears Arsenal could be priced out of a move for the Portugal international.
With five years left on his contract at Molineux, Wolves are in a position to demand as much as £50m for the 22-year-old.
"He’s tried to deal with (the price tag) in the best possible way. Obviously he’s not responsible for the price a club pays for him," Arteta said of Pepe.
"He needs minutes, he’s been talking to me about it. I can’t guarantee that now. We decided for every party it was the best decision to allow him to go."
Arteta said the London club had been planning for the possibility of the player leaving and how to replace him.
"If we can implement the plan that we have, we will try to do it," Arteta said. "We’ve been preparing for the last two months and now we will see."