The 20-year old Anglo-Ghanaian is set to spend the rest of the 2019-20 season in North London after he was recalled back from his loan spell at Leeds United.
He came on for Alexandre Lacazette in the 1-1 draw with Sheffield United last Saturday and could make a start when the Gunners take on Chelsea on Tuesday night.
"I was very impressed with him. Everything I've seen in training I really liked and I think he's grown a lot in terms of his loan and the environment he is was working in,” Arteta told the media.
"That's what the plan was. He was ready to make an impact. We needed that energy.
"I think the team was starting to feel a bit lacking and I made a decision to play him."
Arteta had been willing to send Nketiah on loan again, but admitted the suspension of Pierre-Emerick Aubameyang and injury to Reiss Nelson made him change his mind.
"The circumstances changed as well with our team with the injuries [and] with suspensions," Arteta continued.
"We are very short of numbers at the moment and we've got a player that has a lot of quality and can help us."
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