Arsenal secured the three points in the Premier League clash through a second-half goal from Emile Smith Rowe.
But Ranieri felt the Gunners got the decisive goal because of unsportsmanlike conduct, as his side put the ball out of play to allow the injured Ozan Tufan to receive treatment.
Watford expected to get the ball back as play resumed, but Arsenal went on to score, much to Ranieri’s disappointment.
The coach raised his objections to Arteta after the game and went on to criticise the home side in a press conference.
“We put out the ball and everybody expected Arsenal to give back the ball,” Ranieri told reporters after the game.
“Sissoko and Rose said: ‘give the ball to us, we put the ball out, there was an injured player’. After this it was very strange.
“There was a cross, Kiko Femenia hit the ball with the header, Sarr took the ball, in my opinion there’s a big foul, but nothing happened and then they score the goal. It was very, very strange.
“Our relationship [Ranieri and Arteta] is very good, I told him there isn’t respect when we put the ball out. I said there isn’t respect in this action, just this.”
Arteta came to his team’s defence when asked about Ranieri’s comments, but apologised for the offence they may have caused.
He said: “I have to defend my players, my team and my club. We are the most honest of all of them.
“Even at some stages we are naive. If he felt like that, I apologise, but there was no intention.”
Arsenal are now on a four-game winning run and are unbeaten in their last 10 in all competitions.
After the international break, the Gunners will return to Premier League action with a trip to Liverpool on November 20.
Watford, meanwhile, are still 17th in the table and two points above the relegation zone. Their next match is at home to Manchester United.
West Ham stun Liverpool to go third
West Ham stunned Liverpool as they secured a huge victory that moved them above their opponents into third in the Premier League and dented the Reds’ title hopes.
Liverpool went into this game looking to set a new club record of 26 league games unbeaten, as well as get a win that would move them up to second and within a point of leaders Chelsea.
But they fell behind early on when Alisson, under pressure from Angelo Ogbonna, flapped at Pablo Fornals’ corner and succeeded only in helping the ball into his own goal.
Both sides were then fortunate not to be reduced to 10 men in a scrappy first half, with Aaron Cresswell catching Jordan Henderson with a heavy challenge before Ogbonna was hit in the face by a stray Diogo Jota elbow that resulted in the West Ham defender having to be substituted.
But a moment of quality four minutes before half-time brought Liverpool level when Trent Alexander-Arnold curled home a stunning strike after playing a short free-kick to Mohamed Salah.
Craig Dawson hit the woodwork with a header from a corner for West Ham after the break before Lukasz Fabianski superbly kept out Sadio Mane’s fierce volley from close range.
But West Ham regained the lead midway through the second half when Fornals was slipped through on goal and Alisson was unable to keep out his low shot.
That goal led to the London Stadium exploding into deafening noise, which became even louder when Kurt Zouma headed in a corner minutes later.
Divock Origi swept in a second on the turn to give Liverpool hope of rescuing something, but West Ham kept their nerve to take the three points.
The Hammers are third, level on 23 points with second place Manchester City and three points behind leaders Chelsea. Liverpool, meanwhile, drop to fourth on 22 points.
2022 World Cup Qualifiers: Partey headache hits Ghana
Ghana face uncertainty about the availability of midfield dynamo Thomas Partey for their crucial upcoming 2022 World Cup qualifying fixtures against Ethiopia and South Africa, as the player has had to sit out Arsenal’s Premier League clash with Watford on Sunday.
On the back of a run of successive games for The Gunners, having seemingly put behind an injury plague that blighted his performances last season, the 28-year-old was a surprise omission as Arsenal announced their team news for the Watford showdown, revealing the absence is a result of a “tight groin”.
No further information was given on the player’s situation, and it remains to be seen the degree of the condition, the possible recovery time, and for that matter his availability for his national team games.
Ghana coach Milovan Rajevac, who named Partey in a 28-man squad earlier this week, was informed about the latest development on Saturday and the Serbian has already started preparing for the possible absence of his star man.
Ahead of the final two rounds of matches in the African zone second round, the Black Stars currently trail Group G leaders South Africa by a point, making the upcoming games crucial to their chances of achieving a return to the global showpiece.
The three-time World Cup participants, who missed out on Russia 2018, are set to play as visitors of Ethiopia on November 11, three days before hosting the group leaders for a final matchday showdown in what is likely to decide the winners of the group.
Only the team at the top of the table will progress to the third and final qualifying round.
Aston Villa sack manager after three years in charge
Aston Villa have sacked manager Dean Smith after three years in charge.
Smith, 50, leaves following Villa’s 1-0 defeat by Southampton on Friday, the club’s fifth successive defeat in the Premier League.
Villa are 17th in the league, two points above the relegation zone.
“This year we have not seen the continuous improvement in results, performances and league position which we have all been looking for,” Villa chief executive Christian Purslow said.
“For this reason we have decided to make a change now to allow time for a new head coach to make an impact.”
Villa say the process to replace Smith has started but they will not rush into an immediate appointment – however, it is understood that Denmark coach Kasper Hjulmand is a name of interest to the club and is admired by fellow countryman, Villa’s sporting director Johan Lange.
Hjulmand guided Denmark to the Euro 2020 semi-final, when they lost to England at Wembley, and the 49-year-old has a growing reputation.
Other names are also under consideration, with Villa using the time afforded to them by the international break to home in on Smith’s successor.
