City's 3-0 win at Chelsea has cut Arsenal's lead at the top of the table to six points, with the two teams to meet next weekend. City also have played one game less.
Guardiola told BBC Sport on Sunday night: "It's important because we are six points behind them, if they beat us it's over, if we draw also.
"Now we prepare, relax, don't listen much. Before the Carabao Cup final we were underdogs. We have to be calm, prepare, because Arsenal is an extraordinary team. We have that game, but it's game-by-game.
"We have long weeks to recover. Its a pity we could not be better in Champions League. The Premier League is about how you grow the team.
"The team feel fresh, everyone is there. We have six games left and FA Cup semi-final. It doesn't look much, but it is a lot. Many things are going to happen."
City will host Arsenal at the Etihad on Sunday.