The Belgium international is poised to drop into the free agent pool after seeing no extension to his current terms agreed at Old Trafford.
Dixon believes Arsenal should be in the market for a proven performer, especially as he can fill various positions and provide the kind of physicality which the Gunners lacked towards the end of Arsene Wenger’s reign.
The former defender told Sky Sports: “I’ve never really known what his best position is, Fellaini.
“I know he’s played as an attacking midfielder and then he’s been a holding midfielder.
“When people are on free transfers, he’s something different.
“Even if he didn’t start, you can bring him off the bench and if you’re chasing a goal, you might have to play a different style of football.
“Go a little bit more direct up to the front, and he’s perfect for that.
“I’m sure Arsenal players will be looking at it and thinking ‘we’re going to be linked with quite a few players’, but who comes in the door? Whether Fellaini does we’ll have to wait and see.
“But certainly he’s a player who can change the system of play when he comes on, whether it’s off the bench or even if he starts the game.
“So another player where people will say ‘yeah, that’s a decent signing’.”
Fellaini hinted at a summer move away from Manchester United in May, with there a sense of frustration on his part at the Red Devils having waited so long to enter into contract talks.
He told Sport/Voetbalmagazine: “Last year, I went to the coach and said I wanted a new contract. I then had a second meeting, but I won't ask 10 times.”
Arsenal may be the ones to benefit from that breakdown in communication, with new boss Unai Emery having already tied up one deal for veteran Swiss full-back Stephan Lichtsteiner.