The club have been in woeful form recently and look set to miss out on Champions League football for the first time since 1998.
Alexis Sanchez was the last big name to join the Gunners in 2014 and Henry, writing in his Sun on Sunday column said he believes his former side are no longer attractive.
You need to offer something else, to show that you can satisfy the expectations of leading talent,”
“Yes, wages come into it. It is a job after all and as a player you get what you can — like anyone in any walk of life.
“But competition for trophies is the key. If you are a director of football and you work for Arsenal, how do you attract a big player?”