Barcelona closed in on the knock-outs by beating St Poelten 4-1, while Bayern drew 1-1 at Valerenga but got through their group after Juventus' defeat.
Lina Hurtig bundled home from close range in the 89th minute at the Emirates Stadium to give Arsenal a third victory from four outings.
But more importantly, her goal condemned third-placed Juventus to remaining on three points, meaning they can no longer catch Arsenal and Bayern in the top two spots of Group C.
"I'm super happy with the result," Arsenal interim manager Renee Slegers told UEFA's website.
"We've had a very intense block of games both in the WSL (Women's Super League) and Champions League; this was the last one of the block and I'm very happy with the results."
The German champions currently top the group on 10 points, one ahead of Arsenal, with the eventual winners of the pool likely to be decided when the two meet again on December 18 in England.
In the first meeting between the sides in October, Bayern ran out 5-2 victors with Pernille Harder scoring a late hat-trick.
But before Arsenal beat Juventus on Thursday, Bayern stuttered when they were held to a stalemate by Norwegians Valerenga.
Jovana Damnjanovic's goal 15 minutes from time looked to have maintained the Bavarians' perfect run in the competition but Elise Thorsnes struck in the 88th minute to delay their progression to the quarters, for a couple of hours at least.
'Difficult game'
In Stockholm, Man City saw out a 2-1 victory against Hammarby thanks to goals either side of half-time from Khadija Shaw.
The Jamaican opened the scoring on 31 minutes, before the hosts scored a surprise leveller through Ellen Wangerheim three minutes after the break.
Parity lasted only four minutes, however, as Shaw lashed home a right-footed strike from the edge of the box after slick footwork had created a half-yard of space for her to shoot.
"It was a difficult game in front of 20,000 people," said Shaw.
"They came and they brought the energy, which made it difficult, but we stuck at what we're good at, and we tried to execute in every part of the game. And tonight, we did that."
A fourth win from four outings took Man City to 12 points, three points ahead of holders Barca.
Barca surprisingly went down 2-0 at Man City in their opening match of the campaign but have been ruthless since then.
Francisca Nazareth scored two in nine first-half minutes to give them the lead at St Poelten, before Vicky Lopez added a third and Alexia Putellas then scored her 200th goal for the Catalans.
The two-time Women's Ballon d'Or winner brought up the milestone in the 57th minute when she danced past a defender inside the box and slotted home to complete a slick team passing move.
Source: France 24
BDST: 1116 HRS, NOV 22, 2024
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