The Gunners are on the lookout for a new head coach after Arsene Wenger stood down as Arsenal manager following 22 seasons in charge of the north London side.
Arsenal were initially linked with a potential move to appoint Atletico Madrid boss Diego Simeone and Juventus manager Massimiliano Allegri.
However, the north London side appear to be considering an inexperienced appointment amid talk of Arteta, Thierry Henry or Patrick Vieira taking over the reins.
The Manchester City assistant manager is the favourite to become the head coach at Arsenal given his former role as club captain and experience working under Pep Guardiola.
Arsenal finished in sixth place in the Premier League table this season to miss out on a spot in the Champions League for the second successive season.
Former Chelsea FC star Lampard issued his backing for Arteta to take over the reins at Arsenal ahead of the new Premier League campaign.
“I welcome the news Mikel Arteta is the favourite to become the new manager at Arsenal,” Lampard told BT Sport.
“It is always encouraging to see a club give a young, up-and-coming coach a chance and Arteta has got what it takes to do a fine job.
“Some will question his experience but he knows Arsenal very well from his time there as a player, while he is an intelligent man with a huge interest in tactics. He has worked under Pep Guardiola as his assistant for the last two years and that cannot be underestimated. He will have learnt so much.”
Arsenal lost 2-1 to La Liga giants Atletico Madrid in the Europa League semi-final to miss out on a potential first European trophy in Wenger’s final season.
The Gunners haven’t won the Premier League since 2004.
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