Ljungberg was made interim head coach following Unai Emery’s sacking last month, but it was unclear whether he would remain at the Emirates following Arteta’s appointment.
Ljungberg led Arsenal to just one win from his six games in charge, but Arteta says he was “very positive” when talking to him after their 0-0 draw at Everton on Saturday.
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“I spoke to Freddie after the game,” Arteta said ahead of Boxing Day’s match at Bournemouth.
“I told him my idea and the people I wanted to form my coaching staff, and the roles and responsibilities I expected of them.
“I wanted to know what he was feeling and I wanted to know what he had in mind and what his expectations were. We talked and we made a decision that the best thing was for him was to stay with us.
“He can be very valuable. He knows the players, he knows the situation, he knows the history and his knowledge of the game is only going to help us.
“I knew him a little bit and we will start a new chapter with new ideas and new ways of doing things. I got a really good impression and he’s ready to help. He was very positive.”
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