The Champions League holders sit 16 points clear at the top of the Bundesliga, having scored 57 goals and conceded just nine.
Pep Guardiola’s side have won their last 13 consecutive league matches, and are unbeaten in 46 domestic games.
They have won an incredible 32 of their 36 matches in all competitions this season, statistics that lead Ballack to believe Arsenal have a huge task on their hands to get any sort of result.
“The true strength of this team is that there are no weaknesses,” Ballack said.
“The way they play football – its not just about winning. It is about dominating the teams they beat. It is really impressive. They are looking to establish a dynasty and they must be among the favourites to win the European Cup again.”
Ballack spent four years with Bayern Munich before moving to Chelsea in 2006, and insists he didn’t think it was possible for the team to improve upon the performances they showed last season.
“It was difficult to think that they could have improved. But Pep has adapted very well to the team – and the team to him. This will be so tough for Arsenal,” he added.
“Bayern are now more focussed on ball possession than under Heynckes, which is typical of Guardiola. He wants to keep the ball as much as possible.
“Now they have so much of the ball they can dominate the game in every part of the field. And they make it look really, really easy, although it isn’t.
“If you are successful, it breeds more success. The biggest games so far for me this season were against Dortmund when they won 3-0 away and Man City. In these games, they showed how far they can step up.
“Pep inherited what looked like the perfect team. That’s good, but it means a lot of pressure to do at least the same, if not more. He has done really well so far, adapating a German team and giving it some Spanish influences.”