The Gunners are currently 11 points from first place after this weekend's fixtures.
The Gunners are currently third in the table and 11 points behind the leaders with just seven games of the season remaining.
They do have a game in hand over the Foxes which could see them reduce the deficit to 8 points, but even then would need a poor run of form from Claudio Ranieri’s side to catch them.
Many believe they have missed their chance to win the title, but Smith insists that they are still in the race as they could easily go on a winning run until the end of the campaign.
“I think they could easily go on a winning run, we’ve seen it in seasons past,” he told Sky Sports.
“I don’t think they’re out of it. Iwobi is having a great time, Sanchez is coming back in to form, Wilshere is back in training and they haven’t got many injuries.”
“It’s all in place for them. They have to depend on Leicester and Spurs but you wouldn’t be surprised to see them go unbeaten now until the end of the season.”
The Gunners certainly seem intent on putting together a run of wins between now and the end of the season.
They were at their best on Saturday as they beat Watford 4-0 at the Emirates as revenge for their FA Cup exit at the hands of the Hornets last month.
Critics will say it is once again too little too late though, as they step up their performances when the pressure is off once again.