Arsenal so far have made just one summer signing, bringing in young Brazilian striker Gabriel Martinelli.
They have been rebuffed in their approaches for Crystal Palace winger Wilfried Zaha and Celtic left-back Kieran Tierney.
Saint-Etienne’s 18-year-old defender William Saliba is set to join but then be loaned back to the Ligue 1 club, whereas Real Madrid midfielder Dani Ceballos is said to be close to arriving on loan.
But Dyer reckons that could be where Arsenal’s summer incomings end.
He has been impressed with three younger members of the Gunners squad in pre-season so far.
Striker Eddie Nketiah has scored three goals, Joe Willock has shone in midfield and Reiss Nelson has returned from his loan at Hoffenheim.
Dyer says promoting youth would be similar to the rebuild undertaken by the likes of Chelsea and Manchester United in recent years when they have spent time outside the Champions League.
“I’m watching this pre-season and watching Eddie Nketiah, I’m seeing the comments that Mesut Ozil’s talking about Joe Willock, we’ve spoken on this show here about Reiss Nelson,” Dyer said on Good Morning Transfers.
“I think that there’s an opportunity for that youth to come through.
“I know I’m pushing it, because they’re still young, still inexperienced, a lot of them are still learning their craft.
“But at the same time, you can’t deny the talent. The talent is there so why not given them an opportunity?
“Especially in a year when you’re talking about a restricted budget and the targets that you are chasing after are deemed to be too expensive.
“Maybe it’s an opportunity to promote the youth, why not?
“You’ve seen it with some of the other big clubs, you’ve seen it at Chelsea and Man Utd.
“Sometimes they spent time out of Europe, out of Europe’s top competition to give themselves a chance to rebuild.
“Arsenal have been away from the Champions League for three years now.
“If a lot of the clubs are looking at you and thinking ‘you’re not really a Champions League team’, why not give yourself a chance to rebuild and bring the next batch through?”