City squandered a great opportunity to close the gap on the league-leading Gunners after managing only a 0-0 draw against Everton at the Etihad Stadium on Wednesday night.
Despite the setback, Demichelis is not too concerned and is very confident that City will eventually be able to overtake Arsenal to clinch their third premiership in the last five seasons.
Demichelis told the Manchester Evening News: "I think it was important Arsenal didn't win and we are just three points behind the leaders.
"We must continue the fight until the end and we have a lot of games to recover three points, but we need as soon as possible to win.
"Arsenal have a game at Stoke - it is a difficult game - so we have a chance to recover these three points. If we continue playing like in the second half I think we will win the next game and then the next."