The Gunners have been in good form in recent weeks and their 2-0 win over Manchester United last weekend lifted them up into fourth place in the table with eight games left to play.
Arsenal are looking to finish in the top four for the first time in three years this season after having missed out on Champions League qualification in Arsene Wenger’s final two campaigns in charge.
Liverpool FC, meanwhile, are looking to try and win the Premier League title for the first time, and they currently find themselves a point behind Manchester City.
Arsenal legend Nicholas is expecting to see Manchester City retain their title, with Liverpool FC second, Arsenal third and Manchester United fourth.
Speaking to Sky Sports, Nicholas said: “1. Manchester City, 2. Liverpool, 3. Arsenal, 4. Manchester United, 5. Tottenham, 6. Chelsea.
“The top two are running away with it. Arsenal have the best run-in so I am going to go with Arsenal in third. Tottenham are in free-fall at the moment and have to go Liverpool and Man City.
“Manchester United suffered a first league defeat under Ole Gunnar Solskjaer but I expect them to be resilient and have enough in them to finish inside the top four.”
Arsenal do not return to Premier League action until 1 April when they host Newcastle United at The Emirates.
Liverpool FC travel to Fulham in the top flight on Sunday as they look to reclaim top spot.
Both Arsenal and Chelsea FC booked their places in the Europa League quarter-finals on Thursday night.
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