Mikel Arteta's team beat the current holders, Real Madrid, in impressive fashion over two legs in the quarter-finals of Europe's elite competition. Arsenal beat Real 5-1 on aggregate to set up a last-four clash against French champions PSG.
Arteta's men will now have almost a week to prepare for the first leg against Luis Enrique's side after drawing 2-2 at home to Crystal Palace on Wednesday night.
The first leg takes place in North London on Tuesday, April 29 (8pm kick-off), with the second leg in Paris eight days later.
And the ex-Gunners midfielder, Merson, likes Arsenal's chances of securing a spot in their first Champions League final since 2006.
“Yeah, I think Arsenal win over two legs," he told Sky Sports. "I think Arsenal win, I think we still get carried away with the PSG of the first leg against Liverpool.
"I thought they were outstanding, one of the best team performances we’ve seen this season from anyone. But they lost the game, they lost that game 1-0, people still forget that.
“They are outstanding. But they were hanging on, absolutely hanging on at Anfield. Then they go and play Villa and they absolutely dominated Villa, scored last kick of the game which worked out to be a priceless goal in the end to go 3-1 up.
"Then they want to Villa Park and at times in that game, it got to stages where you’re thinking there’s only one winner here and that’s Aston Villa.”
Merson went on to pinpoint that the Gunners are disciplined which could also give them an edge against PSG.
“I think Arsenal have every chance," he added. "I’d just go slightly go with Arsenal over PSG over legs, I think Arsenal are very disciplined and I think Arsenal win this.”
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