The Gunners sit top of the Premier League with an eight-point lead over second-placed Manchester City, while Liverpool are barely in touch with the European spots - only inside the top eight on goal difference.
That's a huge contrast to this time last year when Jurgen Klopp was chasing a historic quadruple with the Reds while Mikel Arteta was under huge pressure after failing to deliver at the Emirates.
Many would have also backed Liverpool to comfortably turn over Arsenal when the two sides met, whereas now anything other than a victory for the latter seems unrealistic.
Both managers have been on completely different trajectories across the last year with Klopp spiralling downwards while Arteta has risen straight to the top.
Here, Flashscore takes a look at how the management of both coaches has impacted their respective sides over the season.
Klopp's fall
During his seven-and-a-half years at Liverpool, Klopp has rarely struggled for success or ever been in danger of losing his job.
However, the current campaign has seen a huge dip in performances from the Reds across the pitch - with very few players even close to their best form.
While his position isn't directly under threat and he has a lot of credit in the bank from his past success at Anfield, Klopp is under increasing pressure each week to start delivering and end the season on a positive note.
In previous years Liverpool have - at worst - had to fight for Champions League spots, but it now looks like they could miss out on a European place altogether.
Unlike many of the elite teams, the Reds have failed to reinvent themselves and are now predictable and often easy to play against.
Klopp has to find a way to change their style sooner rather than later to avoid an already poor season ending in total disaster.
The main issue for Liverpool is their midfield and both the lack of investment and persistent injuries that don't allow for any solid partnerships to be formed.
A lack of midfield additions shouldn't hide a lack of spending - Darwin Nunez and Cody Gakpo both came in for huge money to bolster the forward line - but Klopp has clearly been left short when it comes to the middle of the pitch.
There have also been subtle signs from the manager that he is losing faith in his players.
For example, making sweeping changes (dropping the likes of Trent Alexander-Arnold, Mohamed Salah and Andrew Robertson) following their 4-1 loss to City, but again they put in a lacklustre performance during a 0-0 draw against Chelsea just days later.
While time is on Klopp's side, the team's downfall over the last year has been alarming and the damage is already done barring a late push for the top four, but the inconsistency in their performances and results could stop them from achieving that.
Any time the Reds pick up a result - like the 7-0 win against Manchester United - they are brought crashing back down to earth with another unacceptable performance, like their 1-0 loss away to Bournemouth.
They appear to be stuck in a vicious cycle that Klopp desperately needs to get out of if he is to avoid some serious questions being asked.
Arteta's rise
In stark contrast to Klopp, Arteta has risen from what seemed like an unsalvageable position to become one of the best managers in the division.
Even before a disappointing fifth-place finish last season, the Gunners had to settle for eighth spot twice in a row.
The board kept faith in Arteta, though, and it has paid off more than many would have believed.
Sensible yet strategic recruitment as well as a significant development in the Gunners' playing style has lead them to become one of the best teams in the league and opened up a huge opportunity for them to win their first top-flight title in 20 years.
Bringing in the likes of Oleksandr Zinchenko, Gabriel Jesus and Leandro Trossard, coupled with the development of William Saliba, Ben White, Gabriel Martinelli and Bukayo Saka has seen Arsenal become a force to be reckoned with - and Arteta has played a major role.
The manager has helped these players to progress a become some of the best in the league, while integrating new additions to the squad and allowing them to make positive impacts.
After being given more time than a modern manager is usually afforded, he has moulded his side to have a clear identity and a clear playing style.
Most could probably name the starting line-up before it is even announced, yet very few teams have been able to stand in the way of the Gunners (much like Liverpool when they were competing at the top of the table) on their charge towards a fourth Premier League title.
Not only this, but previously suspect players such as Gabriel Magalhaes, Granit Xhaka and Eddie Nketiah have managed to turn their fortunes around and make valuable contributions across the season.
Arteta has overseen a complete rebuild at the Emirates stadium and is finally reaping the rewards and repaying the faith given to him by both the owners and the supporters.
His management and coaching has been a main contributor to Arsenal's surprise success, and a win against Liverpool on Sunday would be a statement victory on their journey back to the top of the Premier League.
