Ronald Koeman claims Southampton are ready to slug it out with the Premier League's heavyweights after producing one of the best performances of his reign.

Koeman's side climbed to seventh in the table with a 2-0 victory over local rivals Bournemouth on Sunday that showcased the creativity and intelligence of a squad approaching the peak of their powers.

Since arriving on the south-coast last year Koeman has subtly shifted the emphasis from predecessor Mauricio Pochettino's pressing game to a more eye-catching style of play.

The Dutchman's purist philosophy has been embraced by his players, as Bournemouth found to their cost when they were left flat-footed and bewildered in the first half at St Mary's.

A superb Southampton move cut through the visitors' defence as Steven Davis opened the scoring in the 31st minute and five minutes later in-form Italy striker Graziano Pelle headed home the decisive second goal.

Now, after clinching a Europa League berth last season, Koeman would love to challenge for a Champions League place, especially in a season when top four regulars Chelsea's crisis has opened up a space for a potential newcomer.

"We can be competitive with big clubs in the Premier League, that we know," Koeman said.

"We aren't so worried with the position in the table. We know we can beat everyone.

"Every day we have to work hard and try to do better, then the quality makes a difference.

"It is too early to make conclusions about that (the top four). There are still 27 games to play, it is a long way and I'm not sure Chelsea will be struggling at the end."

Although Southampton surrendered possession a little too easily for Koeman's liking in the second half, he was impressed with the way they kept their defensive organisation and concentration to avoid a repeat of the recent match against Leicester when they squandered a two-goal lead.

"We lost more battles in the second half. It was not the same domination as the first half but we had a good example against Leicester and we learnt from it," he said.

"I think that was maybe the best 45 minutes from us in more than one year. It was high tempo, good ball possession and if you watch the two goals it is all about high-quality play.

"That is how we like to play, it is difficult but we showed great football in the first half."

Southampton's hopes of making a surprise bid for the top four may rest on Koeman's ability to keep Pelle producing at his current high level.

He has nine club goals already this season and Koeman's rates him among the Premier League's best forwards.

"Pelle is very important. Overall we know he is a very good striker, strong, scoring goals," Koeman added.

"I said before he is one of the best strikers in the Premier League."

Bournemouth's fourth defeat in their last five league games leaves Eddie Howe's side one place and one point above the relegation zone in their maiden top-flight campaign.

Howe admitted his players might be suffering from a lack of confidence after losing their last three league matches, leaving him facing the biggest challenge of his career to avoid relegation.

But he was encouraged by their efforts to rescue a point, even if they couldn't take advantage of Southampton midfielder victor Wanyama's late red card.

"It's both ends of the pitch we need to improve. I don't think they are immune from losing confidence. They are human," Howe said.

"It would be unusual if there wasn't some reaction. The challenge for all of us is to put it behind us.

"Its the biggest challenge I've faced and I'll be working as hard as I can to get the results we need."