Spurs go into the game having lost their last two games against Chelsea and Benfica - results which have heaped the pressure on Sherwood.
The former Spurs midfielder branded his team 'gutless' after the defeat against Chelsea, and could do little as Benifca all but ended their Europa League campaign at White Hart Lane on Thursday.
Now after two disappointing defeats Spurs go into the showdown against Arsenal with their hopes of making the top four hanging by a thread.
Sherwood has called upon his side to go for the kill against the Gunners and inject some life into their ailing campaign.
"It is a fantastic occasion - always was to play in these games," he told Spurs TV.
"I don't think there is much blood and thunder these days - I want it to be more of that.
"I think that gives us the edge. We are possibly more functional than they are, but if they get into their stride we know they can be very dangerous, so we need to knock them off their stride."
Tottenham were knocked out of the FA Cup by Arsenal in one of Sherwood's first games in charge back in January.
"It is my first time as a manager at the Lane to be standing opposite Arsene Wenger and hopefully I will get one over on them,” said the Spurs boss.
"We've got the best game we could have, a north London derby. We won't need any more motivation for that, will we? I am sure they will be up for it. It is probably the best game we could have.
"I always thought it was a good time to be playing Arsenal, but it's ups and downs. We have to soldier on, you can't always win games and we know that.”
Both sides go into the game with major injury problems. Tottenham will be without Vlad Chiriches, Erik Lamela and Etienne Capoue, while Mousa Dembele, Emmanuel Adebayor, Kyle Walker and Sandro are doubts.
Arsenal are unable to call upon Mesut Ozil, Jack Wilshere, Aaron Ramsey and Theo Walcott while Kieran Gibbs is a doubt. January signing Kim Kallstrom could make his debut.