Manchester City are serious contenders for the Barclays Premier League title this season, concedes Reds defender Gary Neville. City moved above Manchester United last weekend after a home win over Newcastle that followed the Red Devils' failure to overcome Sunderland at the Stadium of Light.
Manchester United have not been used to sharing top billing in Manchester for over two decades, and City have not won a trophy of any description since 1976.
But Neville feels his club have to take the Blues' threat seriously now.
"Last weekend's results mean we are now behind Manchester City in the league, which hasn't happened too often in the past 20 years," Neville told the Sunday Times of Malta.
"There is no doubt that we have to see City as major challengers this season along with Chelsea.
"At the moment, City and Chelsea are above us and the money that City have spent, and the quality and depth in both squads, means we have to see them both as rivals for the title."
