The Gunners lead Chelsea and Manchester City by two points at the Premier League summit after the Blues defeated Manuel Pellegrini's men on Monday evening.
Following Chelsea's victory over City on Monday evening, Jose Mourinho insisted that unlike Manuel Pellegrini's men, his young side should not be considered among the front-runners this season.
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"He's throwing balls out," Negredo said of Mourinho. "A week ago he said we were't favorites and now he says we are. The favorite right now is Arsenal and we still have to play against them.
"We must do our best until the end of the season and then we will see who is the best."
On the Chelsea defeat he added: "I think it was not our best game, but it is best to forget it as soon as possible. [Chelsea] were good, more effective and in the end that's what is most important.
"[My shoulder] was not 100 percent. I tried to give my best, but now I have to recover and pick up the pace. We have to work and forget this game."
Teammate Jesus Navas insisted City played well in defeat to Chelsea and controlled much of the game.
"They made the goal," he said. "I think we were running the game but there were a couple of actions in which we were a bit undecided.
"We tried but we have to keep working. There is still a lot of the season ahead and many tough opponents still to face."
Negredo also believes City should be viewed as underdogs heading into the two-legged Champions League battle with Barcelona despite the club's prolific scoring form this season.
"Looking at the history, for the numbers of titles they have, Barcelona is the favorite," he insisted. "It is true that now they are not as good as in previous years but Barca are always Barca and you have to be very careful with them. We must have the courage to face them.
"We have a good squad, quality and anything can happen if we do things right."