For the first time in 20 years under Arsene Wenger has missed out on Championship League qualification despite beating Everton by 3-1 at the emirate Stadium.
Goals from Hector Belerin, Alexis Sanchez, and Aron Ramsey made victory possible for the gunners in the last match of the season.
The Gunners began the day a point behind fourth-place Liverpool and were on course to displace the Reds when they took an eighth-minute lead.
But Liverpool, needing a win to ensure fourth, broke Middlesbrough resistance just before the break, and won 3-0.
Manchester City claimed third with a very easy 5-0 win at Watford.
The result means that Manager Arsene Wenger’s future remains uncertain. He failed to follow the players on a lap of honour at the end of Sunday’s match at the emirate.
Arsenal will meet Chelsea in the FA cup finals in a fortnight.
With Agency report.