The England striker will face the Tigers this weekend after completing a deadline-day move to the Gunners from Manchester United last month.
The manager told reporters: "I've got no doubt in my mind after working with him that he can play at any top four side, no question. He's a top player.
"We had a dabble. I rang his brother [and agent] but there were some rather big clubs in for him. I think Spurs were in there, Arsenal as well, and one or two from Europe as well. He had a pick of a few clubs.
"It surprised me because not often do you see Man United selling a very good young player. I'm sure it will work out for him at Arsenal."
Welbeck has scored four goals in all competitions since joining Arsenal.