Everton are currently 12 points behind Manchester City, who are currently in fourth place.
And Merson has not ruled out their chances of gatecrashing the top four, should they put together a strong run of victories.
"There’s a lot of teams [competing for Europe]. Even teams like Liverpool and Everton," he said.
"If they get on a roll and win five, six, seven games on the trot that’s it. It’s not easy to do, but it’s possible. And if they do that you can forget about the top six, you’ll be near the top four."
The Premier League has been more unpredictable than ever before this season, with Leicester City currently leading the way.
Everton are still 12 points back from fourth placed Manchester City, but their form is starting to show signs of improvements.
The Toffees have won their last three matches 3-0, picking up impressive league wins over Newcastle United and Stoke City during that time.
Roberto Martinez’s side’s next match comes against struggling West Bromwich Albion, and if they are able to secure another victory, they would move even closer to the European spots.