AC Milan coach Carlo Ancelotti accepted Arsenal deserved to progress to the UEFA Champions League quarter-finals after the English side knocked out last year's winners.
Cesc Fabregas and Emmanuel Adebayor struck in the final six minutes at the San Siro to give the visitors a 2-0 aggregate win and go through to the last eight.
And despite being condemned to a premature exit, Ancelotti believes the Premier League leaders can go all the way in the competition.
"Arsenal are a strong team and played with great courage," Ancelotti said. "They managed the ball better, put a lot of pressure on our midfield and did not allow us to play as we wanted.
"I think Arsenal have shown they have the qualities to reach the final of the Champions League."
Milan were confident of progressing after claiming a 0-0 draw at Arsenal, but Ancelotti conceded his star-studded attack was well shackled by the Gunners in the return leg.
While Arsenal can now look forward to a quarter-final tie, Milan will have turn their attentions to securing a berth in next year's competition.
"We had only a few occasions to express ourselves," he continued. "We are very regretful at the result but we did our best.
"Now our aim is the fourth place in the Italian league, and we will do our best to reach this."
Source: Sky Sports