The centre-back had only featured once in the Premier League before Arteta took charge in December, putting his future in the club in doubt, but he could yet salvage his career at the Emirates Stadium.
"Why not?" he said, per Goal's Charles Watts. "When I decide, or when the club and I decide, it is going to continue I am happy, if not, then we have to go forward."
"If you think things are over for you, then you should retire. That's not like you should think as a professional.
"You always get the opportunities and a team has more than 20 players for a reason. There is a lot of competition, there are a lot of games and everyone in the team is needed."
Mustafi was dropped by Arteta's predecessor, Unai Emery, having failed to impress for much of his time at the club following his arrival from Valencia in 2016.
Defensive mistakes have often characterised the 27-year-old's Arsenal career.
Last summer, he was booed by some sections of Arsenal supporters during pre-season.
However, he has turned things around under Arteta:
Mustafi has now made seven league appearances this season and started Arsenal's last four games in the English top flight.
In all competitions, he has helped the Gunners keep three consecutive clean sheets for the first time this season, with a 0-0 draw at Burnley followed by 4-0 and 1-0 victories over Newcastle United and Olympiacos, respectively.
He had also been substituted before Bournemouth scored in their 2-1 FA Cup defeat to Arsenal on January 27.
Football.London's James Benge hailed the German's performance against Burnley:
The Telegraph's Sam Dean praised Arteta for his role in helping Mustafi turn things around:
Mustafi's contract expires in 2021, so this summer is the Gunners' last major opportunity to recoup the £35 million they spent on him in 2016.
Before Arsenal consider extending his stay, he'll need to show he can sustain his improved form long term, but if he can keep this level up until the remainder of the campaign, it may be worth doing.
If they decide it would be better to cash in on him, his improved form will likely generate much more interest in him than he might otherwise have received.