A 2-1 defeat to Chelsea compounded City to their first league loss to the season, with Andre Villas-Boas' men closing the gap on the league leaders to seven points.
Roberto Mancini's side are now only two points ahead of rivals Manchester United at the top of the table, but Kompany insists the defeat won't affect him or his team-mates as they gear-up to host the Gunners on Sunday.
"Everybody is already fired up for Arsenal
and that's what we want now, to play football again on Sunday," the Belgian told Sky Sports News.
"That's the main thing for us - everybody is ready for the next game."
A number of the Citizens' players attended the club’s Christmas party just hours after the defeat at the hands of Chelsea.
And the 25-year-old believes the bash was the perfect remedy for the title-chasers following the disappointing defeat at Stamford Bridge.
"I'm only going to say one thing about it - you don't show how good or strong a team you are in the good moments when you win all the games," he added.
"After a defeat it's important you show that you're still a team and you're ready for the next game."
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