Arsenal host the first-leg of their Champions League semifinal against PSG later on Tuesday evening.
Merson told Sky Sports: "I think Arsenal win over two legs. We still get carried away with the PSG of the first leg against Liverpool. When they played at the Parc des Princes, they were outstanding - but they lost that game 1-0, and they were hanging on at Anfield.
"Then they go and dominate Aston Villa and scored with the last kick of the game, which worked out to be a priceless goal in the end to go 3-1 up. At Villa Park, it got to stages where you're thinking there's only one winner here and that's Aston Villa. They had them on the rack.
"Arsenal have every chance. I like what's happened (with the schedule) because so many teams we see in Europe put all their league fixtures around the Champions League and here, we don't do that.
"Probably for the first time for a long time, an English team has got a real nice break before they play this game, which is refreshing."