The Hoops host the Gunners in the first leg of their Champions League qualifier and although the North Londoners will go into the contest as favourites, McDonald believes the Glaswegians have a fitness advantage after already taking on Dinamo Moscow in the past two weeks.
"We certainly hope that's the case," said the striker. "Arsenal will have a big game this weekend when they take on Everton, but we will have played a couple of games more than them by the time Tuesday night comes around.
"I think competitive games provide you with more of a cutting edge than the friendly fixtures. Hopefully, by playing the two difficult European ties against Dynamo Moscow, as well as what will be a difficult game at Pittodrie (against Aberdeen in the Scottish Premier League), it will stand us in good stead for the first leg against Arsenal."
The Australian international also believed Celtic are in a great position to notch up a win as the game is at home – a happy place for them in Europe.
"It would be nice to go into the second leg with something from Tuesday's game - a one-goal lead would be fantastic,” he added.
"We have an impressive record at home in Europe but that's the one thing about the Arsenal players; they will be used to that kind of atmosphere. However, the supporters can once again by our 12th man.
"We have a lot of talented footballers at this club and we have a lot of European experience as well. We know it is going to be tough but we are aiming to give it our best shot and trouble them as much as we can."