The Welsh international looks set to leave the club this summer when his contract expires, after contract negotiations broke down over the summer between the two parties.
While many have suggested that he could go abroad to the likes of Juventus or Bayern Munich, Lauren believes that Arsenal's London rivals would be a good option.
"He wants to play. The club are looking at other ways but as a player you have to find your own way." the former defender, who played in Arsenal's 'Invincibles', told 'Sky Sports'.
"If you don't have the first-team shirt you have to go elsewhere. If I was him I would stay in London because he knows the city.
"Somewhere like West Ham would fit him. It would give him the leadership he needs and he is based in London so I think he has to stay at a London club."