Spurs slumped to a 1-0 defeat at home, albeit at Wembley, to Bayer Leverkusen in the Champions League on Wednesday, their sixth successive game without a victory.
The Lilywhites, who have just four points from as many European games, face a huge battle to make it to the knockout rounds, but must now go into Sunday's league game against Arsenal having drawn their last three league fixtures.
Mauricio Pochettino's side are still unbeaten in the league, but are in danger of falling from the pace, and would be six points from table-topping Arsenal if they lose at the Emirates.
Lloris admits Spurs are in trouble
Speaking in the aftermath of Wednesday's defeat, Lloris admitted "we cannot be in a worse situation," stating that he's finding it "difficult to recognise" his team, who are showing nothing of the defensive stability and attacking skill they've become known for.
“We need to learn quickly because there is a big game in Sunday," Lloris added. "The derby is always important and we need to forget about this disappointment and be ready."
Champions League work set to be wasted
Lloris and co could now bow out of the Champions League if they fail to beat AS Monaco away from home in three weeks time, providing Leverkusen defeat CSKA Moscow.
If Spurs do manage to win in France, they'll still probably need to beat CSKA at Wembley on the final matchday in order to make it into the last sixteen, after a disastrous start to the group.
A clearly frustrated Lloris explained "we worked a lot last season to get into the Champions League and we cannot waste everything," stating enequivocally that they "need to win the next game" or risk an embarrassing elimination.
However, attentions now turn to Sunday's meeting in North London, the Frenchman stating that his side must "keep working and be ready for the big game."