The Gunners currently trail their North London neighbours by four points in the Premier League and the Spaniard admits that a gap of seven points could be too much to claw back at this stage of the season.
"This is a very important match for us with regard to the Champions League," Cazorla told the Daily Mail. "If we lose it would be a difference of seven points, too big a gap.
"It's true we've been inconsistent. We didn't make it through in the Capital One Cup or the FA Cup but our aim is to be in the Champions League and hopefully we'll improve through the rest of the season.
"A win at Tottenham would invigorate the whole team. We're two points away from Chelsea but if we win this we will be one away from Tottenham."
Cazorla was signed by Arsenal from Malaga last summer.