Jamie Carragher insists Man City are 'a level above Liverpool and Arsenal' as he names Pep Guardiola's side Premier League favourites... but warns of the threat Jurgen Klopp's squad can pose

Jamie Carragher named Manchester City as his pick for the Premier League title despite Pep Guardiola's side stumbling in a 4-4 draw against Chelsea on Sunday.

City conceded late via a Cole Palmer penalty to ensure points were shared at Stamford Bridge but remain top of the Premier League table heading into the international break.

The reigning champions are attempting to become the first team ever to win four consecutive English league titles and Carragher believes they are well-positioned to do so, but expects Liverpool to challenge.

Carragher believes City still haven't reached their top level 12 games into the new Premier League season and explained that makes their one-point lead over Liverpool and Arsenal even more impressive.

'I do think City are still a level above Liverpool and Arsenal right now. That might change over the next four or five months as those teams grow, certainly Liverpool, they've got a lot of new players,' said Carragher on Sky Sports.

Jamie Carragher named Manchester City as his pick for the Premier League title

'But it feels like we haven't seen the real City this season and they're still top of the league.

'When you look at that league table, it's a great league table. City haven't moved away from everybody. In some ways, that was a really good result for the league. As the season goes on, the gaps will grow.'

Carragher's comments reflect the well-supported view that City are the team to beat again this year given their dominance under Pep Guardiola since the Spaniard arrived at the club seven-years ago.

However, Liverpool have been City's closest competitor during that time and are the only team to have broken the Manchester side's run of league titles between 2017 and present day.

Jurgen Klopp guided Liverpool to their first and only Premier League title three-years ago but endured a surprisingly difficult previous season where they finished outside the Champions League places.

The Reds have recovered by strengthening in the summer with new arrivals and Carragher expects Liverpool to provide a bigger challenge for the title than last season's runners-up, Arsenal. 

'Why shouldn't Liverpool go to Man City and believe they are in this title race,' said Carragher. 

'They are the one team who have really pushed Man City over these last few years. It is a new Liverpool team but they could still be Man City's biggest challengers because they've got players and a manager who has been there before.'