Ljungberg believes that a couple of top class players could persuade the Netherlands striker to sign a new deal with the club, rather than leave for pastures new.
The former Sweden International feels that the Gunners can compete for trophies again, but keeping the Dutch international will be vital to any future success.
"I think there's nothing to advise Robin, I think it's more that you have to advise Arsenal," Ljungberg told Goal.com.
|The former Arsenal man believes Sweden must beat both England and France
"I think that's what he wants to do, and I think that Arsenal maybe have to open their wallet a little bit and buy maybe two or three top, top players… not just players for the squad.
"I think that will win Robin over on whether he will stay or not, and as a fan I hope that's what he is going to do because I want to see Arsenal lift trophies again."
Ljungberg stated that the building of the Emirates Stadium prevented the Gunners from spending big in the transfer market, but believes that the club is now in a healthy financial position and should look to bring new players in.
"I know that when they built the new stadium, that took a toll on their economy and they couldn't show their muscle so much in the transfer market, so yes I think they have to [spend more] now.
"It's about competition, and a big club in a healthy situation, as they are, need to not lose players and get players in.
"That's what we did in the past when we were at Highbury and I hope we can do it again."
In recent seasons Arsenal have lost key players like Cesc Fabregas and Samir Nasri, and the 35-year-old hopes that the North London club can hold onto key players in the future.
"In your head when a Nasri or Fabregas leave, maybe your two leading players, you don't want to see that in a club like Arsenal, you want to know your best players are definitely staying.
"If there's somebody who doesn't make the team, then they might be leaving, but not the top players. I want to get back to those ways."
When asked about coach Arsene Wenger, Ljungberg openly admitted that he is unsure of how much backing in the transfer market he has from the club's board.
And he believes that what Wenger has done with a young squad should be applauded and if money is available then experienced players should be brought in.
"I would like to hear the owners talk openly," Ljungberg continued. "Because I'm not sure he gets the money that has been talked about in the media. If he is not able to get the money to buy players, Arsene has done wonders.
"It's amazing to do what he's done with a young squad, so I don't think that should fall on him at all when he's criticised.
"If we don't know if the money is there, and the board hasn't said anything, then he has done wonders.
"But if the money will be there this summer I think it will be a good thing to get some players that will lead the young ones and who have actually won things before to be able to get that winning mentality back."
Freddie Ljungberg was speaking at the McDonald’s UEFA EURO 2012™ Player Escort event ahead of Sweden vs England in Kiev. McDonald’s is providing 682 kids across Europe with a once in a lifetime opportunity to walk out hand in hand with their football heroes at every UEFA EURO 2012™ match, to find out about more Player Escort opportunities please visit www.mcdonalds.co.uk/kickstart