Arsene Wenger has insisted he will not spend 'crazy' money during the transfer window.
Arsenal are fifth in the Premier League and head into the second half of the season with key players such as Cesc Fabregas and Theo Walcott sidelined due to injury.
Wenger is expected to bolster his squad and has been linked with several top players, including Zenit St Petersburg's £20million-rated Andrei Arshavin.
However, given the current economic downturn, the Gunners boss maintains that he will think carefully before bringing anybody in.
"We have a specific budget which is not as big as I have read in the newspapers, some ridiculous amounts of money that are completely crazy. But we will try to use it wisely and well if we can," he explained.
"This team is together, getting stronger and stronger - but what we need to focus on is continually developing and not live in dreamland where we are linked with players of £30million or £40million because that is not realistic.
"We have a very, very good squad and we will go for an exceptional talent only - but if it is just to have one player more, we will not do it."
Wenger added: "At the moment, people in football are not conscious of what is facing us economically.
"People still think we are in a bubble, but we will be hit like anybody else in this economical crisis, I am convinced of that."
Arsenal chairman Peter Hill-Wood revealed on Thursday that he had turned down a transfer request from defender Kolo Toure, and Wenger does not expect any of his players to leave this month.
He said: "The situation is that Kolo is a player who has two-and-a-half-year contract and will remain with us.
"I am happy with players who are committed and Kolo is a big example.
"There was a minor incident that you can multiply by 20. It happens every day in every club which is sorted out. Kolo is happy here.
"We have a very young and compact squad and I don't expect anybody to leave."
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