Conte believes his team face a difficult challenge when the sides meet on Sunday.
"Arsenal are a big rival for the title," he said. "If you see their squad you can understand that - they have a lot of top players.
"I don't understand why they can't fight for the title. They have lost only one player, [Alex] Oxlade-Chamberlain, and they have kept all of their players. They have many top players."
He added: "I think Arsenal is one of the six top teams in England they will they have a really good squad to fight for something important, the title for sure.
"That's the reason why I think this is a massive game for us. When you play against Arsenal it is always a massive game.
"It's the same when you play against (Manchester) City, Liverpool, (Manchester) United or Tottenham, there are six top teams in England.
"Anything can happen and for this reason we must pay great attention. We must fight."