Spurs are in fourth place with 48 points after 26 games, and Andre Villas-Boas' side can go four points clear of the fifth-placed Gunners if they beat West Ham away on Monday.
While Arsene Wenger's trophy haul over time has been significantly better than that of any of his rivals at White Hart Lane, Bale thinks Spurs now have a stronger squad than the Gunners and one that will only get better as the club develops.
"I think five or 10 years ago Arsenal were always miles ahead of Tottenham. But that has changed in recent years," Bale told The Sun. "Over the past few seasons we have closed that gap and I think now we have overtaken them on the pitch. I think we have the stronger squad.
"Hopefully we can continue to do that as a club off the pitch as well, with the new stadium that is being built. But on the pitch and as a team now we are a lot more consistent and as a club we're moving in the right direction.
"Arsenal may say they are still ahead of us. But whatever people's opinions, I don't think anyone can deny we are up there fighting with them on merit now."