• Manager wants to strengthen squad but ‘it is not easy’ • Tottenham could finish above rivals for first time since 1995

Arsène Wenger has suggested supporters should retain a sense of realism if Arsenal finish below Tottenham Hotspur for the first time under his stewardship, with the manager’s faith in his squad likely to result in limited business in the transfer market this summer.

Arsenal could be 16 points behind the Premier League leaders, Leicester City, when they kick off against Crystal Palace on Sunday as they attempt to eat into the six-point advantage enjoyed by second-placed Spurs. The last time Tottenham, who play at Stoke on Monday, finished above their north London rivals was in 1995, when the teams finished seventh and 11th respectively under Gerry Francis and Stewart Houston.

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The Frenchman is hoping a pristine end to the season could mean his side will be involved in the title pursuit, for all that he doffed his cap to Leicester’s remarkable campaign, but finishing below their neighbours would not necessarily signify a definitive tip in the balance of power in the capital. “First of all, we are not behind Spurs yet,” he said. “Anyway, Tottenham have been 18 years behind us and they’ve survived. So let’s be realistic.

“ If Leicester win on Sunday it does not affect us, it does not change the fact that we absolutely have to win our game against Palace. Let’s prepare for that no matter what the result is.

“We need a perfect run. They can drop points on Sunday but if they go until the end of the season having lost only three games what can you say [other than] well done, congratulations, even if it’s Leicester that nobody expected.

“At the moment it’s difficult for us to accept that we are not completely there [at the top]. Leicester have lost three games, it is exceptional. They lost two games against us, and then you have Manchester United, Manchester City, Chelsea, Liverpool, all of whom you’d think they would lose more than one game against. Barcelona has lost four games this season, Real Madrid five and Leicester three.”

Arsenal are expected to sign the Borussia Mönchengladbach captain, Granit Xhaka, this summer with £35m being sought for the Switzerland international. Tomas Rosicky, Mikel Arteta and Mathieu Flamini will leave under freedom of contract and Alex Oxlade-Chamberlain could be sold, with further eye-catching incoming business likely to be limited.

Wenger said: “If you look at the top three teams, you will see they have not changed their team a lot. We have to strengthen our squad but it’s not obvious to find the players despite the money the English clubs will have. We are already working but we have to find the players and that is not easy.

“You cannot dismiss that the players are young: Alex Iwobi is 19, Mohamed Elneny is 23, Francis Coquelin 24, and they will be stronger next year but you need to keep a core of players and strengthen where we can. The team is going the right way.”

Wenger’s transfer policy could potentially be further influenced by the UK’s vote on leaving the European Union, with the implications Brexit would have on football still unclear. “It raises many questions,” he said. “Will the European players be considered as they are now? For example, if England votes for Brexit, will the French be considered like South Americans players [who require work permits]? That would completely re-question the influx of foreign players.

“Will England go that way? If they did, that would leave the Premier League with some questions.”