The Belgium international was linked with the north London outfit over the summer, while Premier League rivals Manchester United were also thought to be interested.
Meunier has admitted there were discussions over his future and it could have ended in him calling time on his spell at the Parc des Princes.
The 27-year-old says he is happy in Paris but with his contract running out in the capital and with him falling down the pecking order under manager Thomas Tuchel, Meunier has admitted his long-term future is uncertain.
"It was an intense period, with a lot of interest and discussion," Meunier told RTBF. "I could have left but it was not done because there was nothing that suited the club or myself. Nothing was 100 per cent for it to work.
"I have always said that I wanted to stay in Paris. I still have one year on my contract and I still hope an extension can be secured.
"The situation is a little more complicated because I am no longer the preferred choice in my position, but I remain professional. I feel good there and we will see what happens during the season."
Arsenal, who currently find themselves in fifth place in the Premier League standings, will be looking to play on the uncertain situation for Meunier at the Ligue 1 champions and could come back in for a move for the player in the January window.
However, the Gunners could well face stern competition from United, with Norwegian manager Ole Gunnar Solskjaer likely to strengthen once again after a stuttering start to the season with just one win in the Premier League so far.