With six Premier League games to go, the Toffees are three points behind fourth-placed Chelsea, having played one game more than the Blues, and the Scot admits that they are "underdogs" to reach the top four.
|10/1||Everton are 10/1 with BetVictor to finish in the Premier League top four
"If we have got any chance of making the Champions League, we have got to get something out of it. For the last month we have been thereabouts but we will be the underdogs.
"That said, the way we have been playing, it gives us a chance. We are still in there fighting for a European spot and that is a positive thing."
Arsenal themselves are third and the Everton boss is wary of the danger that they will pose on Tuesday.
"Arsenal are a really good team with good players. They are a good side - they always have been," he added.
"If you were a bookmaker, you wouldn't make us favourites to qualify for the Champions League. Can it help being underdogs? It can but I would rather us be among the favourites."