Arteta was stretchered off the pitch against Newcastle last week, with post-match scans revealing cruciate ligament damage that will entail a projected recovery period of more than six months.
Many believe that Everton's current good form simply cannot be sustained without their talismanic midfielder, but Osman is not willing to throw in the towel just yet.
"Mikel is a player of the highest quality and any team would miss him," he admitted.
"But we are not a one man team and there are a lot of people waiting to come in and fill the space.
"I certainly feel we've got enough quality in the squad to still create chances and we've got the players to put those chances away.
"With Mikel out I'm sure other lads will step up and deliver for the team."
Osman experienceArteta has put on a brave face since sustaining the injury, insisting that he will be back fitter, stronger and sooner than anticipated.
But Osman knows better than most just how difficult the recovery will be in reality - having suffered a cruciate tear himself at the beginning of his career.
"It kept me out for eight months and it's a long, hard road with all the rehab but Mikel has certainly got the mental toughness to get through it," he added.
"Obviously he was disappointed at first but now he's very upbeat and good luck to him - I hope he can stay positive throughout.
"He will have the best surgeons and the best people possible to help with his rehab so hopefully we will see him back playing a lot sooner than eight months."