Joe Cole has questioned the work Arsenal's technical director Edu is doing behind the scenes following the club's decision to offer David Luiz and Cedric Soares new contracts.
The Gunners tied loanee Soares down to a permanent four-year deal last week despite the defender being yet to make an appearance.
Meanwhile big earner Luiz, 33, has been criticised for his performances this season, but has had his contract extended by another year.
Arsenal boss Mikel Arteta is undergoing a significant rebuild at The Emirates, but Cole is unsure these recent decisions are pushing the club in the right direction.
"The one person I feel sorry for in all this is Mikel Arteta," the ex-Chelsea star said on BT Sport. "Because he looks like a great coach and it looks like there is some kind of system he is trying to implement.
"We know David Luiz has been a top player and won everything in the game, but the performances this season, I don't know who's taking the decision to make him another year's contract.
"Arguably one of their biggest games of the season, Arteta left him out.
"For me that's a big signal, he's left his most experienced player out of the biggest game against Man City - and then you give him another years contract. [It's] muddled thinking."
Luiz' 25-minute cameo against City particularly frustrated Arsenal fans after he cost his side two goals with mistakes before earning a red card.
The Brazilian had replaced the injured Pablo Mari, who has also signed a permanent four-year deal after just three appearances for Arsenal.
Arteta is said to have been impressed by both Mari and Soares in training and their impact on the squad.
But Cole added: "Cedric - if you're looking to go and compete with Liverpool and Chelsea and you go and sign a 29-year-old full-back who's arguably not played at that level where he's regularly competing against top sides, and you're asking him make a difference, then giving him a four-year contract.
"If I'm an Arsenal fan, I would be asking questions of Edu and the people making these decisions.
"I feel sorry for Arteta because he's got a lot of promise as a young coach."
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