Arsenal legend Martin Keion said the top four were "something to be fought for" and winning a Champions League spot was a "very realistic" goal for Londoners.
The Gunners had a poor start to the 2021/22 season, losing their first three games in the Premier League.
Mikel Arteta's side have since recovered, although they have remained unbeaten in their last seven league games. They won five and drew twice.
Arsenal beat Tottenham Hotspur and Leicester City in this match. This state of affair has lifted them up to sixth place in the Premier League.
This weekend, the Londoners will host Watford in their final game before the international match.
In an interview with The Mirror, Keion said Arsenal had been able to dispel the feeling of their "soft underbelly":
"I think the win against Leicester was a win. When you go there, you go to Leicester, you cross another major obstacle in development. That's the situation at the moment, it's just a team that's evolving, but it's moving in the right direction.
"After losing the first three games of the season, they did a very good job and turned things around. It's about coaching after the first international competition, determining that these are the people I can rely on. They've made a lot of changes since that game against Manchester City, but now that's paying off.
"The best squad of the season is West Ham coming into fourth place. With tough runs for Manchester United and Tottenham, the top four positions began to emerge.
"I think it's about Arsenal rebuilding their reputation. There's a feeling that they have weaknesses, but they've been able to eliminate that feeling. In several games.
"The top four can be fought for. They definitely need to get back on the European stage and the fourth or fifth position is a very realistic goal for Arsenal. ”
Keion added that Arsenal now look more balanced:
"Now it feels like the team is starting to get into shape. The coach has found players he can trust, from goalkeepers to four-backs who play well.
"This group of people gathered after the first international competition. They seemed to have a major rethink when they lost to Manchester City, bringing Gabriel and Ben White together for the first time. Beverly Tooko came in as right-back and together he became a fan favourite with Ramsdale.
Tierney is in good shape at left-back and Tavares has now joined the position. The defensive four are really good.
"Before the palace, they tried to put someone in the midfield but since they got Patti and Lokunga on the pitch, I've really followed him because he's a very mature player so you can balance Smith Rowe and Saka.
There is also the experience and skill of La Casset and Aubameyang. I think the head coach has a better balance now. ”