The Gunners have at least £70million available to bolster their squad, but are yet to make a significant addition to their ranks this summer.
They are on the hunt for Suarez, with a £40million bid having been lodged for the Uruguayan, but Liverpool want at least £10million more for the striker.
And Parlour believes Wenger should make full use of his funds to ensure that Suarez runs out at the Emirates next season.
“The board have said they’ve got money to spend so if I was Arsenal Wenger I’d say, ‘right, I’ll go out and spend £100m and have a right go this season’ and the fans would respect him for that,” Parlour said.
“Why doesn’t he go out and buy Suarez for £50m? That would be such a boost for Arsenal’s fans.
“There’s no doubt Arsenal need signings, If they want to put pressure on the likes of Man United, Man City and Chelsea, they need to bring in players and Suarez would be a brilliant addition and would really improve the team.
“If Suarez says he wants to leave [Liverpool] it’s going to be hard to keep him because that can upset the dressing room sometimes. The other players will know he wants to leave and that can be a nightmare for managers.”
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