The Gunners lead the Premier League table ahead of Liverpool of third-place City.
Cesc told the London Evening Standard: "It's so tight.
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"Three teams full of quality who hardly lose points. The last five years it has been about two teams, really Liverpool and City so it is fantastic to have another one in there to create this.
"City maybe have the best fixtures, but Arsenal are proving (their title credentials). They go to Brighton and win 3-0 by being very solid.
"Maybe experience will also come into it, City always seem to peak at this time of year, when things get serious. We will see, but it is fantastic to see Arsenal getting involved in this race."