The German coach is confident ahead of Tuesday's game but Michael Zorc is wary of the in-form Gunners, particularly summer signing Mesut Ozil.
The Bundesliga club heads to London three points behind the Gunners having lost 2-1 to Napoli in its opening group game before beating Marseille 3-0.
Dortmund warmed up for Tuesday’s clash with a 1-0 league win over Hannover, thanks to a fourth-minute penalty from Marco Reus, and Klopp is confident ahead of the game, although he will be absent from the touchline as he serves the second of his two-match ban.
"We should be one step further on Tuesday,” he told reporters. “We can play better, and we will. I have a good feeling."
Sporting director Michael Zorc, meanwhile, is wary of facing an in-form Arsenal side which has won both opening group games and has won six and drawn just once in the league since losing on the opening day.
"The match is completely open. Arsenal are in top shape and are leading the table in the Premier League,” he said. “In the Champions League you don't get 10 chances to score. If you have one, you should capitalize on that."
Zorc also warned his side it must be wary of Mesut Ozil, who was in fine form against Norwich on Saturday, scoring twice in a 4-1 victory.
"It looks like he [Ozil] is precisely the player they were lacking before,” he added. “They have assembled a top team again."