The Gunners were defeated by the Parisian giants on penalties last weekend in only their second Champions League final appearance, 20 years after losing their first 2-1 to Barcelona in 2006.
Former Chelsea man Kai Havertz opened the scoring after just six minutes before Ousmane Dembele equalised from the penalty spot in the second half.
Extra time was goalless which meant a 1-1 score line sent the two teams to spot kicks, Gabriel missing Arsenal's final penalty to secure a second successive European prize for PSG.
Arsenal's Gabriel dejected following the UEFA Champions League Final at the Puskas Arena, BudapestArsenal players dejected following the UEFA Champions League Final at the Puskas Arena, Budapest (Image: Mike Egerton/PA Wire)
Mikel Arteta's side secured the Premier League title with a game to go over a week earlier, meaning they ended the season with silverware for the first time since 2020.
Despite their heart-breaking defeat in Budapest on Saturday, three-time European Cup winner Souness praised the North London outfit for their domestic crown.
The ex-Liverpool midfielder exclusively told the Oxford Mail: "Arsenal have had a great year, they've won the Premier League.
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Graeme Souness on the touchline at Oxford CityGraeme Souness on the touchline at Oxford City (Image: Oxford City FC)
"When I was a player at Liverpool, that was always a priority, to win the league, because our coaches would say that more about you as an individual, and more about you as a collective. Winning a European Cup, which I was fortunate enough to do a few times, is a great feeling as well.
"But...winning the Premier League is more, it's a hard, hard nine months you have to be on it."
Souness was at the forefront of the charity tournament hosted by Oxford City last Sunday which aimed to raise money for DEBRA, of which the 73-year-old is the president.
Graeme Souness takes a photo with a fan holding a Scotland shirt at Oxford City (Image: Oxford City FC)
The five-time First Division winner was in the dugout on the day, in charge of the DEBRA Legends team.
Other big name players took to the pitch at the Mgroup Stadium, including Matt Le Tissier, Carlton Palmer, and Dean Saunders, with former Manchester United Champions League and Premier League winner Wes Brown also in attendance.
When asked about Oxford United's fortunes following their relegation to League One last term, Souness said: "They managed to get themselves relegated, didn't they? And that's a tough gig I'm sure, but you just have to bounce back.
"You know, you've had a day to feel sorry for yourself, a weekend to feel sorry for yourself, and now it's all about thinking next year, we're going to get ourselves back and make sure it doesn't happen again."