The Gunners have been in stuttering form in recent weeks and have dropped down the Premier League table and into third place.
Arsenal came from a goal down to earn a 2-2 draw at Tottenham Hotspur last weekend to leave them three points behind their bitter local rivals in the table.
However, the north London side are still eight points adrift of leaders Leicester City, and former Arsenal man Merson feels that the Gunners will not be able to claw back that gap.
Speaking to Sky Sports, Merson said: “They have no chance [of winning the league].
“I say no chance because with the three away games they have at Everton, West Ham and Man City, the best I can see is two draws and a win, and I’m being kind with that.
“That’s five points gained and it still leaves them three points behind Leicester, and Leicester would have three games in hand.
“Man City would be the dangers to Leicester for me. Arsenal and Tottenham fans are each hoping the other doesn’t win the league and Leicester are going to run away from both and win it.
“The two sets of fans are going to be left saying, ‘Yes, but we finished above you!’ But who cares?”
Arsenal are looking to win their first Premier League title since their famous unbeaten triumph in the 2003-04 season.
The Gunners host Watford at Emirates Stadium in the quarter-finals of the FA Cup on Sunday afternoon as they look to win the trophy for the third straight year.
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