Writing in the London Evening Standard, Scholes claims that it is "no surprise" Arsenal were beaten by Borussia Dortmund on Tuesday night.
"The whole world seems to know that Arsene Wenger needs a high-quality holding midfielder but for some reason he chooses to ignore that inadequacy in his squad," writes Scholes. "Mikel Arteta is a nice footballer and does his best in an unfamiliar role but he is not a defensive midfielder.
"Arsenal need more quality defenders, too. Especially given that Wenger encourages his full-backs to play so high up the pitch. It puts extra pressure on the centre-backs and Per Mertesacker in particular.
"I admired Mesut Ozil as a player at Real Madrid but it is no use playing him wide. He is not interested in defending and he needs to be in the centre, among good quality players who get the best out of him."
Arsenal resume their Premier League campaign with a trip to Villa Park on Saturday.