All three were expected to depart the Emirates this summer after dropping out of the first-team picture under manager Arsene Wenger.
"Andrey Arshavin, Denilson and Sebastien Squillaci will leave the club when they come to the end of their contracts on June 30, and Arsenal would like to take this opportunity to thank them for their contribution and wish them well for the future," a club statement read.
Russia international Arshavin arrived in north London to considerable fanfare in February 2009 after proving instrumental in Zenit St Petersburg's victorious UEFA Cup campaign in 2007/08, and then impressing an even wider audience with his displays at Euro 2008.
The 32-year-old forward went on to make 144 appearances for Arsenal, scoring 31 times, including all four goals in Arsenal's thrilling 4-4 draw with Liverpool at Anfield in April 2009.
Arshavin's star quickly waned, however, and he was eventually farmed out on loan back to Zenit at the end of the 2011/12 campaign. He was welcomed back into the Arsenal fold ahead of last season but went on to make just 11 appearances in all competitions.
Brazilian midfielder Denilson, 25, leaves after 156 appearances for the Gunners between 2006 and 2011. He has spent the last two seasons on loan at Sao Paulo.
France defender Squillaci, 32, departs three years after joining from Sevilla, during which time he made just 23 league appearances.