Unai Emery has since taken over at the Emirates Stadium, but his side were given a reminder of the gulf between themselves and City when they were comfortably beaten by the champions at home on Sunday.
However, Guendouzi - who made his debut in that defeat to City following a summer move from Lorient - is confident that his side can defy expectations this season.
"Yes, I believe we can win it this season because of the players and staff we have," the 19-year-old Frenchman is quoted as saying by the Evening Standard.
"We truly believe and will do everything we can to win as many games as we can and to have a fantastic season. I truly believe we can do it. Man City are a top team but there are a lot of top teams in this division because the Premier League is the best league in Europe.
"There are plenty of others but we can be very positive and achieve good things this season. We can win titles because of the environment we have here and the quality of the players at our disposal."
Arsenal have not won the Premier League title since the Invincible season in 2003-04.