Arfield believes Rangers' resurgence can see them challenge for title
Rangers cut reigning champions Celtic's lead at the top of the table to five points after their arch-Glasgow rivals suffered a first league defeat of the campaign away to Kilmarnock on Sunday.
Rangers also have a game in hand, with their visit to Parkhead on December 30 now looking like a key derby clash.
"If you looked at it two or three months ago, you wouldn't have thought this could happen but this is Scottish football, this is what it throws up," said former Rangers midfielder Arfield.
"If you read everything everybody was saying, the league was already done but it's proving to be very different to that. It's all about winning the games and setting up a massive game on the 30th at Parkhead."
Before then Rangers face Aberdeen in Sunday's Scottish League Cup final and Arfield was optimistic the Light Blues could build on a fine run of 25 points from a possible 27 since Michael Beale was sacked as manager and replaced by Phillipe Clement after a poor start to the season.
"If they win the cup on Sunday, that could give them a real boost," he said. "Then they go to Celtic Park on the 30th of this month and, anything could happen, you could potentially go top of the league.
"That would be a huge boost and it's well within their capabilities to do so. Everybody knows how good Celtic are but if they can get it down to two points, you can certainly get momentum with it."