Arsène Wenger’s men hoisted themselves to the top of the table on Monday night after goals from Jack Wilshere and Olivier Giroud helped secure a 2-1 win at Aston Villa.
They have strength in depth in most areas of the pitch
The Gunners suffered an injury blow earlier this month following injuries to Theo Walcott and Nicklas Bendtner, leaving Giroud as their only recognised forward.
However Smith, who won the top-flight crown in 1989, believes Arsenal have sufficient depth in other areas to challenge Chelsea and Manchester City for the title.
Smith told TalkSport: “We all look at Man City and Chelsea as the teams to beat, but Arsenal are top of the tree in mid-January so why shouldn’t they [win it]?
“They have strength in depth in most areas of the pitch. The only position you worry about is up front where Giroud is on his own.
“They’ve got a good squad, though. Arsenal will gain belief as the season goes on and they’re near the top of the table. There’s no reason not to think they can stay the course this year.”
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