Reports from Spanish newspaper Sport claimed the Gunners boss would be open to leaving the club at the end of the season to take over at Barça, where he spent time as an academy player.
The links came after Xavi announced he would be stepping down as head coach of the Camp Nou side in the summer following the club's defeat to Villarreal on Saturday.
When asked whether an Arsenal exit is on the cards, Arteta told a press conference: "No. That's totally fake news.
"I don't know where it is coming from, it's totally untrue and I'm very upset about it.
"I could not believe it. It has no sources."
Arteta, who has a contract with Arsenal until 2025, admitted there haven't been any discussions while adding there is a lot more work to do to help the club reach another level.
"I'm in the right place and I feel good about it. I'm embracing a journey with this club and there's a long way still to go. I have a strong relationship with the board," added Arteta.
"There is a lot to do here and we all share that ambition.
"We want more, we aren't satisfied and the club wants another push to go to another level. We have everyone on board to achieve it."