The Arsenal manager is believed to have looked at the Welshman in his Southampton days while watching Theo Walcott, and now feels he made an error by missing out on the 23-year-old, who went on to join Tottenham in 2007. 

"We didn't take him as we had Ashley Cole and Gael Clichy," he told Al Jazeera. 

"I must confess it was a huge mistake as he can play in midfield. He struggled at the start at Tottenham, then they moved him to midfield and he has done exceptionally well.

"The career of a player sometimes depends on playing in the right position."

Bale's future has been subject to speculation after Tottenham failed to finish in the UEFA Champions League qualifying spots after being narrowly beaten to fourth place by Arsenal. 

Real Madrid are rumoured to be lining up a record-breaking bid of 85 million pounds for the forward, following a season in which he notched 30 goals in all competitions and was named both the PFA Player of the Year and Young Player of the Year, as well as the FWA Footballer of the Year.