Both teams are currently well placed near the top of the table with just under a dozen games to go.
Arsenal are a point off league leaders Chelsea in 2nd, while Liverpool are a further three points back from the Gunners.
Liverpool's primary aim this season is to secure a top four finish and Champions League qualification - however Wenger says they can have loftier ambitions than that.
"It's very tight at the top, Liverpool are in the race, and they have an advantage as it is the only competition they play," said the Frenchman.
Arsenal will look to further their own cause when they go head to head with Stoke at the Britannia Stadium this weekend.
They go into the game off the back of a convincing 4-1 win over Sunderland last weekend, and the Arsenal boss has challenged his side to maintain that form until the end of the season.
"I hope it will be tight until the end, because then it will be interesting and if you are consistent then you have a chance to win," he said.
"You need to be at your best to find the resources to win games, this is a big game for us and of course this weekend we just want to focus on the three points.
"We got the three points against Sunderland who are a tricky team, so we want to do it again.
"We have to look at our results, just focus on that and not speculate too much because we're in a period where we have to move forward."
The game against the Potters is always a charged affair, especially since midfielder Aaron Ramsey broke his leg in a challenge with Ryan Shawcross in 2010.
However under new boss Mark Hughes, Stoke promise to offer a different challenge to Arsenal than usual.
"We had some bad memories [of playing Stoke] but also some good ones as well," said Wenger. "It's a stadium where before, first of all the pitch was narrow and difficult to play, a bit more open to the wind.
"But recently we have shown as well it's down to the performance on the day. If you perform on Saturday that's all that counts.
"Yes it probably is better for us now though, because we went sometimes to Stoke, who had a rough style, we had young players and it was difficult.
"But they have good players, they have done well in the league, they qualified for the Europa league. So they are a real challenge.
"Every manager has his own style, he (Hughes) has experience and has shown he can do well. Given time he will print his own style of play."