In September 1986, he signed for Arsenal for £50,000. In his first season at the club he helped set up Charlie Nicholas for the winner in the 1987 League Cup final, dribbling past three Liverpool players before laying the ball off. Perry was noted for his enthusiasm and hard work. Perry Groves also helped Arsenal win the League Championship in 1988//89 and 1990/91.  Perry made 203 appearances and scored 28 times for Arsenal. Perry then joined Southampton for £750,000 in August 1992.