The Foxes were dumped out of the competition by Slavia Prague, who thanks to a 2-0 win in the East Midlands, progressed to the last 16.
Mikel Arteta's side however tasted victory in their Europa League tie against Benfica, where a late goal from captain Pierre Emerick-Aubameyang helped secure the Gunners' passage to the next round.
A win for Brendan Rodgers' side could see them extend the gap on fifth-placed Chelsea to nine points should they record a third consecutive league victory and Thomas Tuchel's team suffer defeat.
Leicester will once again be without a host of first-team players as the injury list continues to pile up.
James Maddison (hip) didn't feature on Thursday and his manager Rodgers hasn't put a timeline on when the 24-year-old is likely to come back into contention.
Wesley Fofana (hamstring) could return to training in the next couple of weeks whilst Ayoze Perez and Wesley Morgan will also miss out on Sunday's game.
Dennis Praet could be back in training next month but James Justin remains the only long-term absentee after successfully undergoing an operation on an ACL injury.
Defender Rob Holding is set to return for Arsenal this weekend after he missed his side's fixture against Benfica on Thursday due to concussion protocols. Aside from the doubt of Holding, Arteta has a full squad to select from.
Leicester City: Schmeichel; Castagne, Evans, Soyuncu, Thomas; Pereira, Ndidi, Tielemans, Barnes; Iheanacho, Vardy.
Arsenal: Leno; Bellerin, Luiz, Gabriel, Tierney; Thomas, Xhaka; Saka, Odegaard, Smith Rowe; Aubameyang.
The previous encounter between the sides saw Leicester claim their first away win at Arsenal since 1973 thanks to a 1-0 win.
Jamie Vardy found the winner on the day, finishing off a swift counter-attack after connecting with a cross from Cengiz Under and head home into an empty net and secure the three points.
Ones to watch
Youri Tielemans - Leicester City
With no Maddison present, the Foxes need someone to create and the man most likely tasked with that responsibility, is Youri Tielemans.
The Belgian may play in a deeper role than what Maddison would play, but one of the 23-year-old's greatest asset is high ability to play a ball through the lines of the opposition defence for the forwards to run onto.
When Tielemans is on song, it normally correlates in a Leicester win and his teammates will need to rely on both his vision and tenacity in the middle of the park if they are to achieve a league double over Arsenal.
Bukayo Saka - Arsenal
The 19-year-old has gone from strength to strength this season to the point where he is now one of the first names on the team sheet for the Gunners.
Saka's ability to play almost anywhere on the pitch is vital to the way he understands the game and the England youngster is more than capable of having a big impact in any match he plays - as proved by his stunning cross for Aubameyang's winner on Thursday.
Likely to be pitted up against full-back Timothy Castagne on Sunday, should Saka get the better of him, it could be an important factor into the way the final result goes.
Friday saw Brendan Rodgers celebrate two years in charge at the King Power Stadium and the Northern Irishman reflected on his time in charge of the Foxes.
He said: “It’s been very enjoyable. I left a great club in Celtic to come here for a challenge to establish Leicester City as a team to compete for the top places in this division”
Arsenal boss Mikel Arteta meanwhile had high praise for his side's opponents, admitting he believes that Leicester deserve to be in the hunt for a Champions League place.
He said: “They've been really consistent in the league. I think they've done a lot of good things, there's not any luck or anything like that in how they've developed as a team."
“They have built a way of playing which is completely suited to their recruitment policy they have, and with a bit of time the quality that they had already in the team – plus some young talents that they have recruited and experienced players they already have – they have a really good mixture."
How to Watch
The game is available to watch on BT Sport 1 and Ultimate with coverage starting at 11:30am for an 12:00pm kick-off time.
Alternatively, you can keep up to date with live text updates on the VAVEL website and Leicester VAVEL Twitter page.