Merino was officially unveiled on Tuesday after joining the Gunners from Real Sociedad.
The Euro 2024 winner signed a four-year contract that extends until 2028.
This marks a return to the Premier League for the 28-year-old, who previously played for Newcastle United on loan from Borussia Dortmund in 2017.
“Mikel is a player who will bring us huge quality with his experience and versatility,” Arteta said after Merino’s unveiling. “He has played at the top of the game at both club and international level for a number of seasons now. Mikel will make our squad significantly stronger, with his technical ability, together with his strong and positive character and personality.
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