Nketiah, 24, has scored six goals in all competitions so far this season, while he has also provided two assists.
The England international has been forced to share duties with Gabriel Jesus and only 10 of his 19 Premier League appearances have been starts in 2023-24.
However, McCoist thinks that Mikel Arteta must sign an upgrade on Nketiah if Arsenal harbour aspirations of overhauling Manchester City and claiming a first Premier League title since 2004.
What has Ally McCoist said about Eddie Nketiah?
McCoist, who scored 355 goals in 581 games for Rangers, told TalkSPORT: “I like Nketiah but I don’t think he will win you the league though.
“He’ll score goals and I think he’ll chip in a fair amount, but if you’re talking about Arsenal wanting the league, I don’t think they’re going to do it with Eddie Nketiah as their number nine.”
McCoist was subsequently asked who Arsenal should sign to replace Nketiah and he replied: “Ivan Toney, for me, is exactly what Arsenal need. A proper out-and-out centre forward, aggressive. He can drop off if you want, he can play. But, in the box scores goals.
“[Victor] Osimhen is another one at Napoli. He is my number one. Big, big fan of him. But if you ask me ‘should Arsenal break the bank for Ivan Toney?’ Yes.”
Toney scored 20 Premier League goals last season, but is yet to make his first appearance of the 2023-24 campaign after he was handed a footballing ban for over 200 betting breaches.
However, the English striker will return to action when Brentford face Nottingham Forest on 20 January.
Despite pledging that he would repay the faith shown in him by Brentford fans, Toney recently stated that he “wants to play for a top club.”
In regards to Nketiah, Crystal Palace have expressed their interest in signing him, as exclusively reported by FootballTransfers.
While McCoist believes that Nketiah isn’t at the level Arsenal need, Arteta disagrees. In October, the Gunners boss told the media: “I’m really happy for him [Nketiah], an academy player to experience a Premier League hat-trick.
“He needs to enjoy the moment, he fully deserves it, and hopefully, there are many more to come. He’s already playing for Arsenal.
“He’s started games in the Premier League. He’s already really good [and] he can be better. The best thing he’s got, along with the talent, is his mentality. It’s incredible.
“When he has that mentality and that talent, he’s going to get much better.”