Everton manager Carlo Ancelotti says Arsenal's improvement under Mikel Arteta is 'clear', ahead of the Toffees' clash at the Emirates on Sunday.
Ancelotti's side are two points above Arsenal in table, and four off fifth place - which could be enough for Champions League qualification if Manchester City's ban is upheld.
Since replacing Marco Silva at Goodison Park in late December, Ancelotti has masterminded a run of improved form which has seen his side in the mix with Sheffield United and Wolves for a top four place.
And the Italian believes his counterpart Arteta has performed a similarly impressive job since replacing Unai Emery at Arsenal.
Speaking at his pre-match press conference, Ancelotti confirmed he watched the Gunners' 1-0 Europa League win over Olympiacos on Thursday night, and the north London side have improved since he was in the stands for the goalless draw between the sides in December.
“Arsenal have improved a lot, they are playing better," he said.
“We were in the stand when Arsenal played here. The improvement (since then) is clear."
The former Napoli and Chelsea manager was briefly linked with the hotseat at Arsenal after Emery was dismissed, but Ancelotti says he is happy that he joined Everton.
“I am happy to be here. I made the right choice. I feel good here. I like the place.”
Everton travel to Arsenal on Sunday before hosting Manchester United next weekend, in what will be pivotal games for their hopes of European football.
And despite the potential of qualifying through Manchester City's ban, Ancelotti says his team must concentrate on finishing in the top four.
"If we want to think about the Champions League, we have to finish fourth," he said.
