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Mikel Arteta's side have the opportunity to make up crucial ground in the race for the top spot, and overleap Manchester City in second place, should they beat Jurgen Klopp's visitors to the Emirates.
But should Liverpool seal the away win, all three points will put them out temporarily out of sight at the summit of the table - and eight points clear of Arsenal, who are desperate to end their 20-year league drought after falling painfully short at the tail end of last season.
But Fabregas was quick to remind to Arteta and his players of the high stakes around the match at this point in the season.
Cesc Fabregas (left) has given Mikel Arteta a warning ahead of facing Liverpool on Sunday
The Spanish head coach will relish the opportunity to get in striking distance of the leaders
‘I think knowing Mikel a little bit that he will want to win. It’s a big opportunity for them to just close the gap,' Fabregas told BBC’s Planet Premier League podcast.
‘From my opinion, I would say that they will really go for it and they will try to close the gap as soon as possible because now it’s starting to be the time where the Premier League gets decided. Who will be the last two or three teams at the top until the end?
‘Arsenal cannot afford to drop any more points. It is early in the season but it’s where you’re starting to see or feel who the real champions are. Who are the ones who will be able to hold on until the end or not?’
Fabregas was also wary of the intent in his old side's opponents in the wake of the announcement of Jurgen Klopp's departure at the end of the season.
Since the German manager broke the shock news last week, the already rampant Reds have romped to successive dominant victories, batting Norwich aside 5-2 in the FA Cup, and trouncing a visiting Chelsea 4-1 midweek.
‘We also have to understand the fact that emotionally I believe a lot in moments like this, for example with Klopp leaving,’ the former player, who won the FA Cup with Arsenal in 2005, added.
‘The Liverpool players will be so much on top of things and wanting it so much more because of that.
‘I do believe there is an extra bit on Liverpool’s side to go and win it.’
But the former Chelsea star reserved praise for the mentality that the head coach hs instilled in his players.
Arsenal were frustrated in the FA Cup earlier this year with the Reds' first visit to the Emirates
Liverpool have been in impressive form and seem even more emboldened by the imminent departure of Jurgan Klopp
They are young, they are brave, they are emotional and they really want to go for it in every single game,’ Fabregas continued. .
‘When we talk about not losing, remember the Inter Milan of Jose Mourinho, the Chelsea of Jose Mourinho… they are so experienced, they know exactly what to do and they know how to play these types of games.
‘At Arsenal, and I speak from experience, any time we tried to do anything like this we were just not good enough, for the type of players we had, for the age, for the experience. We just always wanted to go for it and get the three points and at least try.
‘Just to go for a draw, that means you have to play in a different way that you are not used to and we were just not good at it. We need to be honest.’
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