Vincent Kompany believes the recent recruitment drive at Eastlands will close the gap between the two Manchester clubs.
City last season relinquished control of the Premier League title won in such dramatic style on the final day of 2011-12, with champions United finishing 11 points clear of their neighbours.
However, after bringing in an exciting crop of new signings - Stevan Jovetic, Alvaro Negredo, Jesus Navas and Fernandinho - as well as hiring a new manager in Manuel Pellegrini, City captain Kompany insists the club is in a stronger position to challenge for silverware.
"We have played a big part in the transfer market so far," Kompany said.
"There was a bit of a gap between us and the champions last season and we are doing everything to bridge that. It will be a good season and I am sure the other teams will be competitive.
"We are a team that can look forward and say that we can compete on every front."
City are currently in Hong Kong following a short tour of South Africa and they will continue their build-up to the new season in the Barclays Asia Trophy.
The tournament will see them pitted against South China on Wednesday before potentially having to face league rivals Tottenham or Sunderland.
Brian Kidd, City assistant manager, has echoed Kompany's view that the side will improve on last season.
"I wouldn’t swap our squad for any in the Premier League," he said.
"We are just trying to do everything we can in the preparation.
"Buying new players is one thing but the way we have prepared is really good so far.
"We are doing everything we can to be one of the teams that can compete for every trophy."
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