The north London side head into the game top of the Premier League table on goal difference from second-placed Leicester City as they look to win the title for the first time since 2004.
Chelsea, meanwhile, have been struggling to find consistent form and are currently 14th in the table and 19 points behind their London rivals.
The Blues earned a point against Everton last weekend when John Terry scored deep into stoppage time to rescue a 3-3 draw in west London.
And former Arsenal man Merson feels that the Gunners are capable of thrashing the Blues in north London on Sunday if they start the game strongly.
Merson wrote in his column for the Daily Star: “If Arsenal score first against them they could rip Chelsea to shreds – especially if Alexis Sanchez is back to play next to Mesut Ozil, who is on fire.
“Look at the way Chelsea celebrated drawing with Everton.
“No disrespect to Everton but Chelsea celebrated getting a point against them as if they’d won the FA Cup.
“It was embarrassing and it made me think how the mighty have fallen.”
Arsenal were beaten 2-0 by Chelsea when the two sides last met at Stamford Bridge back in September.
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