Pep Guardiola has conceded that Manchester City are at a disadvantage in the Premier League title race as "Liverpool are better" than his side.
The reigning champions have arrested a poor run of domestic form to win back-to-back league games late in December, climbing back up to third place in the standings.
They sit two points behind Liverpool and Aston Villa - though have played a game fewer than Unai Emery's side - and will drop back down to fourth place if Arsenal avoid defeat at Fulham on New Year's Eve.
Guardiola's Man City are going in search of a record fourth-successive Premier League title, but the Spaniard noted that Liverpool are currently in a better position to top the table come May.
"[The title race is] so tight - we're not top of the league, Liverpool are better," Guardiola told BBC's Match of the Day after Saturday's 2-0 win at home to Sheffield United.
"We've had injuries and some problems, we won the titles, important ones, our level is really good I would say and we are there. Now rest, we all need it. January is less intense than November and December so we prepare for what's next."
Goals from Rodri and Julian Alvarez saw Man City past the Blades in their final game of 2023, while they have now won their last four games in all competitions and are still yet to welcome back Erling Haaland from injury.
However, Kevin De Bruyne returned to a matchday squad for the first time since August, and though he remained an unused substitute on Saturday, Guardiola is grateful to have him available for selection once again.
"The standing ovation when he was warming up tells me the people want him back. It was a long injury for all of us but we're happy he's back," Guardiola said.
