Mesut Ozil is confident Arsenal have what it takes to go all the way in the Champions League this season.

Arsene Wenger's men started the competition with a defeat at the hands of Dinamo Zagreb, yet Ozil remains optimistic about their chances as they prepare for Tuesday's home game against Olympiacos.

"We’re developing ourselves further as a team. Defeats always rouse the team more and our aim this season is to go as far as possible, and if possible to win it, because we have the potential," Ozil told the Arsenal website.

"But we are aware that there are a lot of teams in the tournament who are among the favourites and have a very good squad. In the Champions League, as in football, anything is possible and that’s what we want to show this year. With a bit of luck, we can reach our target and that’s what we want to do.

"We want to develop ourselves further. We have a very good team with lots of quality. Of course the first game didn’t go well for us but we have a lot of matches in front of us that we want to do well."

Egnlish teams have failed to make an impact in Europe in recent seasons, but Ozil has little doubt they will soon be challenging the likes of Bayern Munich, Barcelona and Real Madrid once more.

"I think there was a lot of misfortune last year. When you look at the English teams, you see that they are strong because they have a lot of players in their ranks who have a lot of quality.

"In the Champions League, especially in the knockout rounds, sometimes one goal or the away goals ruling can decide ties, like with us against Monaco, where that was the case. We had some bad luck and as a team you need more fortune. I think it will be different this year - the English sides are well equipped and will go far."