The 23-year-old has struggled to tie down a starting role under new manager Mauricio Pochettino as he continues to work his way back to full fitness following injury troubles.
However, an impressive performance in the League Cup victory over Nottingham Forest in midweek could put him in line for a first league start of the season.
Spurs have picked up just one point from their last three league outings, and Townsend is keen to get a chance should Pochettino be tempted into making changes.
"I think I'm improving in every game. Of course I'm not where I want to be at the moment but I'm getting games under my belt, I'm getting my fitness slowly better and with every game I'm improving so hopefully a few more games in the Europa League and the cup games and I might be ready to challenge for a Premier League spot," he told reporters.
"Of course I want to be involved [against Arsenal], you'd have to ask the manager whether I'm going to be involved. The manager's formation is new to me but I'm learning.
"We've had some chats about how he wants me to play and I'm trying to implement that when I go out on the field. It's going to take time but I know I can fit into this formation."
Arsenal are one of just two teams yet to be beaten in the Premier League this season.