Campbell, who won two league titles and three FA Cups with the North London club, now believes that they are all but out of the title race.
"If that result was different, they could still be in the race. I think that result puts them definitely out of the race," he told Perform.
"A miracle has to happen [for Arsenal to win the league], for the other teams to lose games, for them to win games, for it to all change around.
"Mathematically it's still there but the whole momentum of them trying to get back into winning the Premier League has definitely been dented and I think it could be gone now."
Arsenal have the chance to get back to winning ways on Saturday when they host Manchester City in the Premier League.