The player was left out of the club's squads for the Premier League and Europa League, effectively leaving him without any game time until January at the earliest.
While Arsenal have improved defensively since the arrival of Arteta, they have sometimes struggled for goals going forward.
Ljungberg, a former player and caretaker boss at the Gunners, claims that the German is still capable of playing an important part in the campaign.
Speaking to The Athletic, Ljungberg said: "Mesut is a great football player, we know that. We all have different opinions and everybody needs to accept that people have different opinions.
"What I tried to do, what I believed in, was that when you play teams who, on paper, you're a bigger club than or you think they'll have a low block and you need someone to unlock it, Mesut has the total quality to do that. I think there is a space for a player like that in those kind of games."
With his contract due to expire in 2021, Ozil will be free to discuss moves with other clubs from the beginning of next year.