Jesse Marsch’s side went down to a 4-0 defeat at home against Manchester City on Saturday and are five points above 18th placed Everton in the Premier League, though the Toffees have two games in hand.
Everton hold their destiny in their own hands and Leeds will now be desperate to pick up points over the coming weeks.
The next chance for Marsch’s men comes next Sunday when they head to the capital to take on top four chasing Arsenal at the Emirates Stadium.
Former Leeds boss Grayson is not writing off the game and is of the view that an inconsistent Arsenal team can be beaten by the Whites.
“There’s no reason why we can’t go to the Emirates and get a result because Arsenal are a bit flimsy and they can be anything on the day”, he said post match on BBC Radio Leeds.
Grayson also thinks the clash against Manchester City was not kind to Leeds.
“It doesn’t help when you lose Liam Cooper in the warm-up and Stuart Dallas, a reliable player in numerous positions.
“So things have gone against us in that respect, though we do need to do better with the ball”, he added.
Arsenal are in action on Sunday when they travel to London rivals West Ham United.