Leaders Leicester are one point ahead of second-placed United ahead of the meeting between the two sides at the King Power Stadium on Saturday.
The bookmakers do not expect the Foxes to remain there for the rest of the campaign but Van Gaal believes there is a chance they could lift the trophy.
"It is possible, I think," the United manager said when asked if Claudio Ranieri's team could win the league.
Van Gaal added: "Normally these kind of clubs can be a long time competing, but normally at the end it's more difficult.
"But in England because of the quality of the teams, because every team has the money to buy players - and they have bought players - the difference in the Premier League between the clubs in level is not so high."
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