Boss Arsene Wenger refused to rule out an overhaul of Arsenal's squad next season after Bayern Munich knocked them out of the Champions League.
He said: "Will I rebuild the squad this summer? It's difficult to say now. I don't want to criticise my players.
"We gave absolutely everything and lost to a very good side. We can't say we're good enough to win the European Cup as we haven't won it - facts are facts."
Wenger has been guaranteed funds to strengthen the squad in the summer.
The Frenchman claimed his side's first leg performance, when they lost 3-1 in Munich, was their downfall.
Though Thierry Henry's goal gave Arsenal a 1-0 win in the second leg at Highbury, Arsenal went out 3-2 on aggregate.
Wenger said: "We lost it in Bayern in the way we gave away the goals away from home. A 1-0 home win is a good, but our display in Germany cost us.
"I feel it was a very balanced game and both teams played well. It was close."
Wenger added: "We can congratulate the team for a fantastic effort.
"We scored at the right moment of the game and got a feeling that if you keep a clean sheet now you can score a goal.
"There are still some very young players out there. We had a good game against a good side and the difference was small but we just didn't do enough."
Wenger acknowledged his team had not made the progress he had desired in the competition following their exit at the quarter-final stage last season to Chelsea, who are in the draw for the quarter-finals on 18 March.
He said: "I feel that we cannot say that we have progressed. I feel you have seen good young players who have a good future in that competition.
"There are many good teams in Europe."
Wenger turned his attention to the rest of the season and the likely source of any silverware they may secure - the FA Cup - although he refused to completely rule out the Premiership title.
Arsenal travel to Bolton for the quarter-final on Saturday and Wenger said: "Every game is big for us. We are in a good position in the championship and we also want to do well on Saturday. We will give everything at Bolton."
The quarter-final draw will take place on Friday 18 March. Any team can be drawn against another and the two legs will be played on 5/6 and 12/13 April.