Mikel Arteta hails PSG as world's best after Arsenal's Champions League final heartbreak

PSG retained their European crown with a 4-3 penalty shootout victory in Budapest after the final ended 1-1 following extra time, denying Arsenal a first Champions League title.

Kai Havertz gave the Premier League champions an early lead before Ousmane Dembele's penalty levelled the match. Gabriel Magalhães missed the decisive spot-kick after Eberechi Eze had also failed to convert for Arsenal.

"I want to congratulate PSG, Luis in particular, because in my opinion they are the best team in the world," Arteta said.

"What they are able to do with the ball, with individual actions, I haven't seen it. It's not a plan to play in certain scenarios when you don't have the ball, but they force you to do that."

PSG dominated possession and chances throughout the contest, while Arsenal spent long periods defending against sustained pressure.

Arteta also questioned the decision not to award Arsenal a penalty in extra time after Noni Madueke went down under a challenge from Nuno Mendes.

"I watch it back and it could easily be a penalty," he said. "Especially when we see the penalties they gave this year in the competition."

Despite the defeat, Arteta quickly turned his attention to the future, calling on Arsenal to strengthen after ending their 22-year wait for a Premier League title this season.

"We will start to make some very important decisions if we want to reach another level," he said. "We're going to have to show that ambition because we are more than capable of doing it, but it's going to demand being very ambitious, very fast and very smart."

Arteta said Arsenal must use the pain of defeat as motivation to improve further.

"You have to go through that pain, digest it and turn it into fuel to improve and to reach a different level," he said.

For now, however, the disappointment remains raw.

"Pain, that's it. When you are so close in the competition and you are a few penalty kicks away from winning the biggest football club competition, that's the way you feel."