The Spain international hasn’t featured for the Gunners since a 1-1 draw with Norwich City at Carrow Road in November due to a knee injury.
Arsene Wenger signed Egypt international Mohamed Elneny in a £9m deal from Swiss champions Basel in a bid to bilster his side in the January transfer window.
However, the Gunners have managed to win just five of their last 20 games in all competitions, which has resulted in their premature exits from the Champions League and the FA Cup.
Former Republic of Ireland and Manchester United midfielder Giles believes Arsenal are missing Cazorla terribly in the Premier League title race.
“He is the most creative player that they have,” Giles told Newstalk.
“He has the courage to take on the ball in difficult situations. He controls the ball and passes it around.”
Giles continued: “A couple of months ago they were winning 3-2 at Liverpool and they more or less collapsed. If Cazorla had been playing, he would have kept it at 3-2.”
Arsenal were 2-0 winners against Everton at Goodison Park in the Premier League on Saturday afternoon which ended a three-game winless run in the English top flight.
The Gunners host Watford in their next Premier League game at the Emirates Stadium on 2 April.
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