The two sides meet at Old Trafford on Sunday with Arsenal the favourites.
The Gunners travel to Old Trafford looking to bounce back following a disappointing midweek loss to Barcelona in the Champions League.
They have not had the best record in Manchester, having not won their since 2006, but have been made the bookies favourites to win the game for the first time in the Premier League era.
That in itself shows how the two sides’ fortunes have flipped in recent years, and Souness says Arsene Wenger’s side will have too much for their hosts in the game.
“They are playing Arsenal, one of the best footballing teams in our league right now,” he told Sky Sports.
“Wenger's side have been very good this year, and the result in midweek against Barcelona will be a wake-up call for them. They must refocus and regroup now because they have a great chance in the league.”
“When it comes down to it, I think Arsenal will have too much for United on Sunday.. For Arsenal, it's time to put the Barcelona game out of their minds. They have to park their disappointment because it's onwards on upwards.”
If there was one game that could demonstrate Arsenal’s title credentials this season, it is arguably this one.
The win over Leicester City was a big one for them, but a victory at Old Trafford would be on another level given their record there in the Premier League.
If they were to win there, it would not only prove they are serious contenders this season, but also likely provide the platform for them to move forward and secure the title.