Unai Emery admits Arsenal cannot afford to buy any players in the January transfer window and can only bring in loan signings.
The Gunners are keen to add a defender and a winger to their ranks but head coach Emery has confirmed there is no money available for permanent deals.
Arsenal are fifth in the Premier League and have an upcoming FA Cup fourth-round tie at home to Manchester United.
Emery's side are also in the last 32 of the Europa League where they will face BATE Borisov over two legs next month.
The Gunners signed Bernd Leno, Stephan Lichtsteiner, Sokratis Papastathopoulos, Lucas Torreira and Matteo Guendouzi in the summer at a cost of over £70million – but Emery conceded the winter window will be much more frugal from Arsenal.
"We cannot sign (players) permanently," he said.
"We can only loan players. Only loan players. I can say to you that the club is working, the club is telling me the different situations in each moment. At the moment, we haven't had any news today about that."
Arsenal have been linked with Barcelona winger Denis Suarez, Yannick Carrasco of Dalian Yifang and Ever Banega from Emery's former club Sevilla.
Asked specifically about a move for Suarez, Emery said: "I don't know his situation now.
"We can only sign players later on. I know the club is working on possibilities of which players can help us with big performances like we need now."
Emery also praised the attitude of Aaron Ramsey as the Wales international continues to be linked with a move away from the Emirates Stadium.
Juventus are reportedly close to agreeing a deal with Ramsey, who can leave for free in the summer when his contract expires or in January if a fee can be agreed, but Emery is pleased with the continued application of the 28-year-old.
"My idea and focus, I say to him every day, is that we need his performance for us," he said.
"In the last match I was very happy with him. I asked in the last match at Blackpool (in the FA Cup) if he is okay to help us play and he said, 'Yeah, coach, I want to play' and he played with a very big commitment to us.
"After, his future belongs to him, his family and agent. Every day he's here with us, he's working very well. I want his behaviour and his focus to be on West Ham on Saturday."
There was better news for Emery ahead of Saturday's Premier League trip to face London rivals West Ham.
Arsenal struggled with injuries throughout the festive fixtures but can welcome back a host of players for the derby at the London Stadium.
Mesut Ozil, Laurent Koscielny, Hector Bellerin, Nacho Monreal. Shkodran Mustafi and Konstantinos Mavropanos are all back in full training and under consideration for the weekend.