Defender also praises countryman Samir Nasri
Arsene Wenger's side have made a good start to the league campaign but they have also showed their vulnerability with home defeats to West Bromwich Albion and Newcastle United.
Distin believes his side can trouble Arsenal if they play to their full potential.
He told the club's official website: “For a while Arsenal have played the best football in the league.
“They maybe lack a bit of experience or a few macho players like they had when they were winning everything, but the way they play is very interesting.
“They are still a tremendous team. I watched them play Newcastle and even though they lost the game they played wonderful football so they are always a good team to watch and a tough opponent.
“They play with the ball on the ground and with one or two touches, maximum. They play with a lot of movement and you can end up chasing the ball for 90 minutes if you are not careful.”
Despite Arsenal's 'total football' style, Distin wants Everton to approach the game in the same way they prepare for all matches.
He added: “The approach is the same as it always is.
“We focus on what we do well and that is the main thing.
“Obviously you show teams respect and we work on analysing the opposition, looking at what they are good at and what their strengths are.
“But we know if we play to our potential then there are not many teams who can live with us – particularly at Goodison.”
Meanwhile, Distin has praised fellow Frenchman Samir Nasri for his contributions so far this season for Arsenal.
Nasri has been a key component of the Gunners’ set-up, scoring four league goals from midfield, and his sparkling form has not been lost on Distin.
He said: “Nasri was already a big star in France and he came over and not many people had heard of him.
“But I knew he would do well because he has excellent technique.
“Also he is a typical Arsenal player and you knew it was the right club and the right manager for him.”