Arsene Wenger suggested recently that his team had three principal rivals for the championship in Chelsea, Liverpool and Manchester United. Tomorrow Arsenal hope to reduce that to two. There is a feeling in their dressing-room that Liverpool will be all but out of contention if they are beaten at Highbury.

"It's a big game for Liverpool, bigger than for us," said Patrick Vieira, "because, if we win, the gap between us will be even wider. It would be difficult for them to come back then."

Seven points clear at the top of the Premiership last month, Gerard Houllier's team could be 12 adrift of the leaders tomorrow night.

Given that Liverpool have lost their past four league away games, they will need to summon the type of performance they have not managed for weeks to avoid worsening an already grave situation. Eight matches without a win is the club's worst sequence since 1953-54.

"It is a crisis by Liverpool's standards," said their midfielder Steven Gerrard.

How different the mood is at Arsenal. The club's St Stephen's Day win at West Brom completed a highly satisfactory six days. While Manchester United lost twice in that period and Liverpool mustered two draws, Wenger's team recorded successive victories. Tomorrow they can bloody Liverpool's noses and on New Year's Day at Highbury they hope to knock Chelsea's title chances.

Liverpool, of course, are not talking in terms of their championship hopes being suffocated. That is partly because they believe they can recover but also because they remain hopeful of success at the home of the double winners.Assistant manager Phil Thompson recalled going to Old Trafford last January in temporary charge after one win in nine league matches.

"People said exactly the same thing at this time last year when we'd had a tricky spell," he said, "but we went to Manchester United and won. After that we went on a run that would normally have won the title. A victory, however it was achieved, against a good team could spark that type of run again, so we've got to embrace these games rather than fear them."

No one at Liverpool disputes confidence is down but they are trying to see positives in their misfortune, noting that all the contenders have looked vulnerable at some point and suffered fluctuations in form. After all, Manchester United went from supposed no-hopers to Arsenal's greatest challengers in a few short weeks before slipping back again.

"In previous seasons I think the run we are on would have seen us out of the title race," said Gerrard, "but we are still hanging in there. It's very dog-eat-dog at the top and nobody is not being beaten. No one is running away with it yet. It is an unusual title race and hopefully, that will continue and we can get ourselves sorted out."

Houllier may dip into the transfer market next month. He was not considering new signings a few weeks ago but the longer the club's miserable sequence continues the more inclined he will be to buy. Possible targets would include the Feyenoord midfielder Brett Emerton and Charlton's left-sided England under-21 international Paul Konchesky.

Of late Houllier has been subjected to severe criticism on local radio phone-ins. Having led the team to fourth, third and then second in the Premiership he was expected to complete the sequence this season. Gerrard insists the manager is not to blame.

"The criticism the manager has had is unbelievable really," he said. "When you look back at the state the club was in four or five years ago, then he has come in and turned us into a treble-winning team which has improved each season. We are having a bad spell but there's still plenty to play for and we could still have a good season. We are still in the title race, we're in the semi-finals of the Worthington Cup and in the last 16 in the UEFA Cup. What has happened is down to the players."

There was a belligerence about Thompson when he described as "rubbish" the suggestion that Liverpool's championship challenge could end tomorrow. Wenger, unsurprisingly, also took that line.

"If it was Easter, I'd say 'yes' but Christmas, no it's too early," he said. "Liverpool have a good team with strong players."

But for Liverpool to lose to the side they want to overhaul would be a huge psychological blow, as well as a significant one in terms of points.

"Arsenal are the best team I've played against this season when we met in the Community Shield," Gerrard said. "But on our day I think we have the players to match them. It is just so important that we show that now."