Spurs moved up into the third place in the Barclays Premier League after Gareth Bale's superb stoppage-time goal secured a hard-fought 3-2 win at West Ham on Monday night.
However, should Arsenal - who are unbeaten in five league matches, winning three in a row - secure victory on enemy territory this weekend, the gap would be reduced to just one point as the race for Champions League qualification hots up.
It has been some 18 years since Spurs last finished above the Gunners in the league, and Diaby - hopeful of recovering from a calf problem to be fit for Sunday - is all too aware of just what this match means for everyone involved.
"We all look forward to these big games because they are not only important to us, but to the club and the fans. It is more than a game," Diaby told Arsenal Player.
"The atmosphere around the game means we all want to win, so that makes it very exciting. That is why I think there are so many goals."
Diaby feels Arsenal can use their 5-2 victory over a 10-man Spurs at the Emirates Stadium earlier this season as leverage when the battle lines are drawn again at White Hart Lane this weekend.
"It will be difficult because they play at their ground and have the crowd supporting them, but we just have to deal with that," the France international added.
"Of course [we have a psychological edge] because from the last game against them we took some lessons and we know them well.
"We know how to deal with them."