Cazorla has impressed for the North London side since his move from La Liga outfit Malaga at the beginning of the month and has become an instant hit with the supporters.
Many have made comparisons between the 27-year-old and former Arsenal captain Fabregas, but Keown believes that Cazorla is the superior player of the two.
"Arsene Wenger has seen a few creative players leave in the past year but he has a new jewel in the crown in Santi Cazorla. The Spaniard looks a fantastic talent and his class is there for everyone to see straight away," Keown told the Daily Mail.
"He is Liam Brady and Cesc Fabregas rolled into one - he has Brady's shooting ability and Fabregas's vision. He's better than Fabregas with the ball too – he moves it so quickly, which is shown by the fact he's had more touches in the opposition half than any player so far this season. Watching him, it is difficult to tell sometimes if he is right or left-footed, as he is so comfortable with both.
"Straight away, Cazorla has taken on the role of lieutenant in the Arsenal midfield. He is happy to receive the ball anywhere, he's taking all the free kicks and his vision is superb. What is certain is that with him in the team, Arsenal will create a lot of chances."
Arsenal face Liverpool at Anfield on Sunday.