The Premier League champions host the Gunners at Anfield on Monday.
Klopp says Arteta has done a pretty impressive job and changed the whole mood at Arsenal.
Head coach Jurgen Klopp has hailed Mikel Arteta ahead of Liverpool's Premier League clash against Arsenal on Monday night.
The Reds host the Gunners at Anfield, with both sides looking to continue their 100% win in the English top flight this season.
However, the German says manager Arteta, who replaced Unai Emery at the Emirates stadium in December, has shown that he is an 'exceptional football manager' in a 'pretty short period of time'.
"Mikel Arteta has shown in a pretty short period of time that he seems an exceptional football manager," Klopp told a press conference on Friday.
"The team he sets up now, the structure of the team is absolutely exceptional. The balance between offence and defence is really good. Good organisation, freedom for the players as well, he uses players in the right positions.
"He has done a pretty impressive job and changed the whole mood of the club. So it’s a tough, tough opponent."
Klopp also confirmed captain Jordan Henderson won't be available for selection after sustaining a thigh injury in their 2-0 win against Chelsea last weekend.
Defender Joel Matip is still sidelined but England international Joe Gomez will resume training on Merseyside today.
New signing Thiago Alcantara, who made his debut at Stamford Bridge last week, could be in Liverpool's starting 11 against Arsenal.
Speaking about the Spaniard's chances of starting against the Gunners, Klopp said: “We will see, we will see. We have a few days to train, some boys have to recover from last night, so we will see how we set up against Arsenal.
“I have an idea, but why should I make the decision today when we have time until Monday? But he is in contention, for sure. Yeah, let’s see.”