Arsenal midfielder Mikel Arteta believes that his club is in no way inferior to UEFA Champions League adversary Borussia Dortmund, despite losing to the latter on home soil.

"No [they weren't the better team], we conceded a goal when we were on top in the game, and were likely to score a second to kill the game," Arteta told arsenal.com.

Dortmund snatched full 3 points after Polish striker Robert Lewandowski converted a Kevin Großkreutz cross at the 82nd minute into a goal to beat the Gunners, 2-1.

Arteta acknowledged the fact that his side's lapse of judgment was to be blamed.

"We know in the Champions League against those teams you are limited to small chances, and it was our fault [that we lost]," he added.

Winning at Liverpool on Saturday in the English Premier League was just what Arsenal needed to lift the squad's spirits, after being ousted by Chelsea in the Capital One Cup.

"It is a massive game again [in Dortmund on Wednesday]. We knew this week was going to be very tough, so beating Liverpool is a good way to start it. Dortmund will be a very different game, with the way they play, so we will have to get ready for it."

The Spaniard disclosed that being in pole position early in their Premier League campaign is one of the main ingredients of the Gunners' success, which transcends to other competitions like the Champions League.

"When you are at the top compared to where we were last season, it feels different," he revealed.

"We have more belief and are starting to create a bit of fear into the opposition; that is giving us a better chance to win the games."

"When you are on a good run and the confidence level is high, it makes everything a bit easier."