The playmaker has talked up his fellow Spaniard, who followed the ex-Villarreal man in joining the north London club from Malaga and has settled quickly into English football
Monreal arrived from Malaga on transfer deadline day and has impressed at left-back, even scoring in the Gunners' important 2-0 win over Swansea City.
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"He's a very good signing, and he’s proving it," Cazorla told the club's official website.
"Nacho is a footballer I really enjoy watching and playing with. I spent last season with him at Malaga and he was a vital player for the team. He’s adapted to the Premier League very well.
“What’s more, our style of play suits him because he’s someone with a lot of movement.
"I think Arsenal have really got it right with the transfer. I’m very happy because he’s a great mate."
The ex-Villarreal man also revealed he has helped Monreal to adjust to life in England, and believes his compatriot is very happy with how things have gone so far.
He added: "We know each other from Malaga and I know it can be difficult when you first arrive.
"I had the exact same experience and, thanks to Mikel [Arteta], I adapted much better. So I know, for Nacho, it makes it easier to adjust if he has me and Mikel.
"We’ve tried to help him settle as easily as possible and, little by little, he’s understanding more. He’s got a feeling for the club. I talk to him every day and he’s very happy to be at Arsenal."