Mikel Arteta says Arsenal were the best team in the Champions League this season, despite losing their semi-final to Paris St-Germain.

The Gunners came into the Parc des Princes needing to overturn a 1-0 loss from the home first leg to book a place in the final against Inter Milan.

But while Arsenal created a number of good opportunities, they could not find a way past PSG keeper Gianluigi Donnarumma until Bukayo Saka's late strike. By then, goals from Fabian Ruiz and Achraf Hakimi had put the French champions on their way to a 2-1 second-leg success, and 3-1 on aggregate.

"We were very close, much closer than the result showed, but unfortunately we are out," said Arteta.

"I am very proud of the players, 100% I don't think there's been a better team [than Arsenal] in the competition from what I have seen, but we are out.

"This competition is about the boxes and in both boxes are the strikers and the goalkeepers and theirs was the best in both games."

Having failed to reach a first Champions League final since 2006, the Arsenal boss revealed his players were in tears in the dressing room following the loss - and he was "upset and so annoyed" they did not find a way to turn around the tie.

Asked whether he agreed with Arteta, PSG boss Luis Enrique said his own side deserved to reach the final.

"Mikel Arteta is a great friend, but I don't agree at all," he added. "They played in a clever way and they got the match to the right moment for them because they played in the way they wanted, and the way they love. But in the two legs we scored more than them and that is the most important thing in football.

"Arsenal played a great match, and we suffered, but we deserved to get to the final. They are a great team, but I repeat, we scored more goals, we played in a great way in the first leg, and the second half of the second leg was a different match, and we could have scored even more goals."

The Gunners started superbly and, after Declan Rice headed wide from close range, Gabriel Martinelli and Martin Odegaard forced Donnarumma into fine saves.

Saka also forced the PSG keeper into another excellent stop in the second half and missed another clear chance at 2-1 down as Arsenal finished the match with an expected goal ratio of 3.14.

"When you analyse both games, who has been the best player? The MVP has been the same player, the goalkeeper." added Arteta.

"And the Champions League is decided in the boxes and it's won the game for them because obviously after 20 minutes, and what happened in London as well, the result should have been very different.

"So I can take a lot of positives and I'm very proud of the team. We have to arrive in the competition at this stage with the full squad, full available, in the best condition. We haven't got that, so let's put that aside.

"Still, the team that I've seen today is probably one of the best, if not the best team in Europe.

"It gives me so much pride, but at the same time I'm so upset, so annoyed that we didn't manage to do it. I see how much they wanted it, because they were in tears. It hurts, but you have to deal with that."

The defeat meant Arsenal will end the season without winning a trophy for the fifth season in a row, after Arteta led them to an FA Cup triumph in 2020 during his first season in charge.

They have also finished second in the Premier League for the last two seasons and the Spaniard was asked whether his players will struggle to get motivated to try again after another disappointment.

"With fear you cannot play football at the highest level. We had the best example in the [PSG] dressing room - Marquinhos, 11 times he's tried in this club to be a winner, 11 times he's the captain," said Arteta.

"So that's the truth and let's see if they win it. So 11 times they have to go down and up.

"So look in the mirror at somebody like this with that trajectory and you want to be in the sport and you want to be competing and be very close to all the trophies. You better be able to deal with that."