The Gunners' record transfer has "galvanised" his team-mates into playing some of their best-ever football, says the Everton manager as he prepares to face the league leaders
The Toffees travel to the Emirates Stadium on Sunday to face the Gunners, who could extend their lead at the top of the Premier League to seven points with a win, and the Spaniard expects a fearsome test.
Labelling Arsenal the division's outstanding side thus far, Martinez feels that the German's impact has been a significant factor in the Londoners achieving their potential.
"Well I think it's obviously a long way to go yet in terms of the league [but] what is clear is that Arsenal are the best team in the league so far," he told 'Rock 'N' Roll Football' on Absolute Radio. "They haven't got any weaknesses.
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"I think that it is important that we know that we need to be at our best to compete but, in the same manner, we feel that we want to go to the Emirates and we will try to be ourselves and looking forward to try to win the game."
Everton have been in fine form themselves since Martinez replaced Manchester United-bound David Moyes in the summer and the 40-year-old says that he inherited a setup that was ready for success.
"When I walked into Everton, the football club was in a fantastic state, I must admit that," he added.
"When you go into a new job, normally it is because things haven't been going well and you need to start from scratch and you have got nothing in place.
"Here, it was the opposite. It was a real successful club; all the platform was there and the foundations were there. It is just trying to change a lot of things without losing anything and that has been a fantastic transitional period."