The Gunners have made a promising start to the new season having won both Premier League matches so far but Ozil is still yet to make an appearance since March. Arteta feels that the team's good form has made it difficult for the German midfielder to get a look in.
When asked to explain Ozil's lengthy absence from the pitch, he said: "The team is evolving, you can see the level they are achieving.
"This is where we are at the moment. We want to evolve more and play better and compete better. We need to keep maintaining that.
"I'm really happy with the performance here, how difficult they're making things for the coaching staff to select the squad.
"We are picking the players that we believe are the best for each game. You can see we keep training, it's what we're trying to do."
Arteta added that Ozil is not the only player to have been left out of the squad and that he will on select players in good "condition".
The Spanish coach said: "You can see that the players we are changing, we are using, it's very difficult every week - not [just] for Mesut - but for some other players as well to make the squad. Every week we try to pick the right players.
"Of course I understand and I respect your questions, but I have to try to do my job as fair as possible. I try to select the players that are, in my opinion, in better condition."