Arteta left his post as an assistant coach at the Etihad Stadium to take the top job at Emirates in December 2019.
The 38-year-old impressed during his first season at North London and his side have started this season on a high, having won three out of their first four Premier League games.
Speaking to the media in his press conference, Guardiola was ruminating on facing his compatriot and was quick to hail Arteta’s effort in London.
"We should clarify who is the master and who is the apprentice. We didn’t have any doubts about what he is doing in a short period of time," the former Barcelona and Bayern Munich said.
"He settled really well and the way his team is playing right now is perfect for the quality they have. He was able to get Arsenal back to the position they were a long time ago.
"He’s doing really well in all competitions and Mikel is a competitor and a fighter and all the people who love him are more than happy with what he is doing in London."
Guardiola also offered a fitness update on Kevin de Bruyne, Sergio Aguero and Gabriel Jesus.
“Kevin is out unfortunately but the rest of the players came back well. I don’t think it is much but he will be out for the next games I think. Sergio is training well and we are happy," he added.
"Every team needs a striker and we played without them. He has been training good and we’re happy to see him back on the pitch after a long time.
"Everyone came back [from the international break] a little bit better than the previous time because then Cancelo, Bernardo [Silva] and others were injured and couldn’t play at the beginning of the season.
"There are injuries to some muscles where you can take a risk, but there are others where you cannot. He [Jesus] has an injury in the part of his leg where if he injured it more he could be out for a long, long time."