The Cherries host Manchester City in the quarter-finals of the competition on Sunday.
The FA Cup winners are guaranteed a place in the group stages of the Europa League the following season.
In an interview with Guillem Balague for BBC 5 Live’s Football Daily, Iraola said: “The FA Cup is, for me, much more important than playing in Europe. It’s a title.
“Sometimes they talk about the cup competitions as a way to get into Europe. I don’t care about Europe.
“We are playing in a final, we are fighting for a title. For me, it’s much more important.”
Bournemouth face a difficult task against seven-time FA Cup winners City, who were beaten in last year’s final by rivals Manchester United.
But Iraola insists there is no reason to believe his side cannot beat Pep Guardiola’s team and then go on to win the competition.
“I think we can win it,” he added. “Probably we are not the favourites, especially with the opposition we have in the quarter-finals but I think we have shown [we can win it].
“We are three games away from winning it. With a good day from our players, we can beat all the teams. I think we have a chance, probably not as big as City or Aston Villa, but I think we have our chance.”
As a player, Iraola spent over a decade at Athletic Bilbao and came up against Guardiola’s Barcelona side on several occasions, saying he “lost many times” against them.
Having been so dominant in recent years, City have had a more difficult season comparatively, having not been in the title race for the majority of it.
It has prompted suggestions that his style of football is no longer as effective as it was – something Iraola disputes.
“Pep Guardiola is the best manager I’ve known. I have no doubts,” he said.
“There is a structure, organisation, multiple options, but at the end of the day, I think what he tries to do is put the player in the best scenario to let him shine.”
The Bournemouth boss believes Guardiola sides are among the most difficult to prepare to play against, adding: “Normally, against other teams, they normally play like this, they have these adaptations…
“With Pep, you have to analyse like, I don’t know, nine or 10 different ways they can go.
“The last game we played against them, we prepared for a couple of main structures and straight away, in the third minute, we had to change everything.
