The Toffees have fallen short of expectations so far this season, and they are currently stuck down in 11th place in the standings.
Leicester, meanwhile, have enjoyed a remarkable campaign and built up a three point lead at the top of the table.
Leicester’s rise has been hugely impressive, but Merson believes that Everton should still be ahead of the Foxes - given the quality in their squad.
“This is a top team,” the former Arsenal midfielder said of Everton’s squad. “They have got unbelievable players! How are they not above Leicester?
“How many Leicester players would get into the Everton team?
“Seriously… I got the sack at Walsall. I thought the chairman was doing the right thing when I got the sack, now I wonder. I might ring him up!”
Everton have won just seven of their 24 Premier League matches so far this season, even though many of their performances have caught the eye.
The Toffees have shown great quality going forward, but their failure to see matches out has cost them any chance of challenging for the Champions League spots.
Leicester, on the other hand, were tipped to have to struggle against the drop this term, but they have defied expectations.
The Foxes have played without fear, and they now have a chance of making English footballing history by winning the league.