The Gunners thumped Real Madrid 3-0 in the first-leg of their Champions League quarterfinal.
Asked if this was one of the big achievements in Arteta's career, Parlour told Tribalfootball.com: "Oh yes, definitely. This was a statement win for Arsenal. The stadium was rocking and Arsenal dismantled the Champions of Europe. To win by scoring 3 top class goals, two world class free kicks and a super striker by (Mikel) Merino was something to behold.
"Arsenal played the best game, they went forward well and defended well. They started the 2nd half superbly and Saka was fouled for both goals which led to the free kicks. Credit to Arteta that without (Kai) Havertz and Gabriel, they could still compete well and dominate the game."
Parlour, considering the second-leg, says Arsenal must not concede early next week at the Santiago Bernabeu.
"Arsenal must look to get on the ball as often as they can next week. You can’t let Madrid score early as if they do, they will fancy themselves of scoring at least 3 goals. With Arsenal’s pace, they can be dangerous and (Gabriel) Martinelli especially could be the key to getting a goal.
"Defensively Arsenal looked pretty solid at Emirates, so they must continue to concentrate and be brave, throwing themselves in front of everything that comes at them and (David) Raya is in good form too. I expect Arsenal to be brave, be on the front foot and with (Thomas) Partey and (Declan) Rice, they have good protection in front of Raya and the two centre backs."
On Declan Rice's two-goal performance, Parlour was particularly happy. Like Rice, the former midfielder also played for West Ham and was delighted for the England international after Tuesday night.
He continued: "Yes, I wanted Declan to come to Arsenal for a long time and this season he has improved again with more goals and assists. It’s great to see and those free kicks were (David) Beckham-esque. The second one was a bullet.
"(Paul) Merson scored a few good free kicks and (Thierry) Henry also notched quite a few. But none as huge as those free kicks last night. I remember (Santi) Cazorla free kick in FA Cup final against Hull City at a crucial time, but these were better.
"Partey is outstanding too. The way he always looks to play forward all the time is great. He helps the team massively in transition and credit to him that he looks so composed on the ball and such a strong presence in the middle of the pitch. He works so hard for the team, one of the underrated players for sure."
- Ray Parlour was speaking to Tribalfootball.com on behalf of NetBet Online Casino