The Gunners have had a mightily impressive campaign so far and are the current leaders, but six-time winners Manchester City may still be able to claim their third consecutive crown.
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Mikel Arteta and his team have exceeded expectations so far this season and have cemented themselves as a contender for this year's trophy.
They have lost just one game in the league and sit five points clear of Pep Guardiola's side heading into the break for the World Cup in Qatar, courtesy of their weekend win against Wolves and City's shock loss to Brentford.
Arsenal have shown great commitment and spirit to their play and have so far seen the fruits of their labour, something Souness has been impressed with.
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Speaking to talkSPORT on White and Jordan, the former Liverpool man praised Arteta when he said: "Arsenal had the disappointment of losing out on the Champions League last year, what a reaction he's got from his players.
"A young squad that should only get better if we can try and apply logic, which doesn't always work in football, but Arsenal right now if you ask me, are a club that are going places with this manager.
"He weathered some difficult times, OK he got an FA Cup under his belt but he did weather some difficult times, and by the people that make the decisions at Arsenal, he has paid them back."
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However, despite their current title charge, Souness does not believe they will be crowned as champions come the end of the season, citing holders City as the best of the lot.
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"Will they sustain it? I still think people are playing for second place to City, but Arsenal are a fabulous story right now, they really are."
Arsenal and City are yet to play each other this season in the Premier League, but their eventual meeting should prove to be an exciting encounter given their battle for the title.
Arteta has done a remarkable job given their efforts earlier in the year, but only time will tell if they can sustain their momentum and claim their first Premier League trophy since 2004.