Chelsea are on a three-match winning streak and thrashed Barcelona 3-0 in the Champions League on Tuesday.
But Arsenal, who beat local rivals Tottenham Hotspur last weekend, are determined to maintain their relentless pace as they chase their first Premier League title since 2004, Arteta told reporters on Friday.
"After beating Spurs, we had to make a statement against Bayern Munich, we did that. Now we have to go to the next one," the manager said.
"It's a big game, a big London derby. We're going to play a really good opponent, they are in really good form. We know the challenge and the opportunity we have. We are fully ready for it."
Arteta said Chelsea, who have staged a strong comeback in the league after losses to Manchester United and Brighton & Hove Albion in September, deserve to be in the title race.
"The squad they have assembled, the numbers they have, the amount of quality, the manager and the coaching staff they have, it makes sense what has happened, which is very positive. They deserve to be there," the Spaniard added.
Consistency key for Gunners
Arsenal, who had to settle for draws on their last two trips to Stamford Bridge, are hoping Leandro Trossard will be fit for Sunday after the Belgian attacker picked up a knock against Bayern, Arteta said.
"With Leo, there is another test today. We have to see how he is feeling. It doesn't look much. We still have a few hours, and we have to wait and see. There is a potential chance,” he added.
Arteta stressed the need for his players, who are unbeaten in all competitions since August, to maintain their levels of consistency.
"Not that they surprised me, but you have to be able to perform in the manner they did individually throughout long periods of the game against our opponents. That's very difficult to do," he added.
"Now it's about evolving the same consistency on Sunday to win again."