The 33-year-old penned a one-year extension at the Emirates Stadium last June but is currently free to discuss terms with foreign clubs over a potential move this summer.
The Brazilian has been a regular for the Gunners this season, making 14 appearances in all competitions, although he has not started any of the team's last three Premier League matches.
When asked whether Luiz could pen a fresh deal with the club, Arteta suggested that there was a possibility of the South American remaining for the 2021-22 campaign.
"We will see what happens. There are a lot of things happening around the club, a lot of decisions to make. I don't want to rush any decisions. I just want players to be focused," the Evening Standard quotes Arteta as saying.
"They know that they have six months left or eight months left, whatever it is, some of them a year. They know that. Their contracts are like that, we cannot change that.
"We cannot change all the contracts right now. I think it is time to be focused. We have been through a difficult period in the last few weeks and I just want people to focus on football. If you do what you have to do on the football pitch, you will deserve the chance to keep with us if this is what you want."
Luiz has previously expressed a desire to return to Benfica before the end of his career. body check tags ::