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Rooney admits the north London side have made clear improvements and says it will be 'interesting' to see if they can continue their strong form and avoid a traditional late season collapse.
there's 28 games to go, anything can happen, one result can turn the league on its head," he told Weekend Warm Up.
The Gunners' start to the campaign had been an excellent one and they lead the division by five points from a trio of rivals.
"I've always enjoyed the games against Arsenal, it's a great club and it's great to play against them obviously and to score. Especially when you score winning goals because they're big games."
"It is the perfect fixture for us. Arsenal are obviously doing really well but with our current form, it is a chance for us to get a bit closer in the table.
Arsenal win will put Manchester United in Premier League title frame
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"I think they've got some great players and you know they're a good team," said Rooney, whose first Premier League goal came against Arsenal more than 11 years ago.
Wayne Rooney believes Manchester United will be in a 'great position' to retain their Premier League title if they beat Arsenal on Sunday.
"I said the other day after the game it will be interesting to see if they can maintain that, certainly over the last six or seven years they've faded off.
"I think for us all it's a massive game, Arsenal are doing really well so for us it's a chance to get closer in the table and keep our current form going.
United go into the Old Trafford showdown eight points behind the league leaders after a difficult start to the campaign under new manager David Moyes.
United went an eighth game without loss when they drew 0 0 at Real Sociedad in midweek but it was Arsenal who produced the eye catching UEFA Champions League result of the round with a 1 0 win at least season's runners up Borussia Dortmund.
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But Rooney, who has scored nine goals in Adidas Harden 1 White Black Gold
"We're still within touching distance and to get a victory on Sunday will put us in a great position I think.
so far this season, is confident a win for his side would transform the title race picture and increase the chances of the league trophy remaining in Manchester.
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