Jamie Carragher has changed his opinion on Arsenal following their demolition job on Atletico Madrid(Image: James Gill - Danehouse/Getty Images)

Jamie Carragher has been forced to admit for the first time that Arsenal are genuine contenders for the Champions League.

The Gunners demolished Atletico Madrid 4-0 on Tuesday, making it three wins from three games in Europe this season.

Mikel Arteta's side have now put to the sword Athletic Club, Olympiakos and Atletico without conceding a single goal. Gabriel Magalhaes nodded home Declan Rice's free-kick to open the scoring before Gabriel Martinelli whipped in a stunning second.

Viktor Gyokeres then added two close-range strikes to end his barren spell in front of goal and seal another three points for Arsenal.

Arteta's men are joint-top of the Champions League table, level with holders Paris Saint-Germain and last year's finalists, Inter Milan.

Thoroughly impressed by what he saw from the Premier League leaders, Carragher heaped praise on Arsenal and labelled them one of the favourites.

"Right now, I think Arsenal and Bayern (Munich) are the two most impressive teams I've seen when you look at...