Nketiah has returned to Arsenal, following the termination of his loan spell at Leeds this week.
Arsenal initially expected Nketiah to spend the whole season at Leeds, but he has struggled for starts out on loan.
Arteta now has a decision to make over whether to send Nketiah back out on a temporary move to a different Championship club, or to keep him at Arsenal.
And the Spanish boss said: “We have to sit down with the loan department and we'll do that this afternoon, to discuss the best possible way for him to keep developing. I think the environment that he's been living in has improved him as a player, 100 per cent.
“He played some minutes, not as much as we wanted, but he's a kid with incredible potential and we have to make a decision for the club, not for the next four months but for his career.
“What's the best thing to do? We have to sit down with him, hear from him - that's very important because we need to know what he needs as well - and make the right decision for the next five months.”
If Nketiah is kept at Arsenal he looks likely to be an impact substitute at best.
The youngster showed great finishing ability during his time at Leeds, but there are other areas of his game which he needs to improve.
Leeds boss Marcelo Bielsa often favoured picking Patrick Bamford over Nketiah, as he offered the Whites greater hold up play.
Arsenal currently have Alexandre Lacazette leading the line for them, and it is difficult to see Nketiah displacing the Frenchman.
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