The champions will find themselves nine points behind Chelsea if the leaders overcome Stoke City on Saturday, with Manuel Pellegrini's men not in action until Monday's trip to Selhurst Park.
But Pardew reckons the battle for the trophy is still very much on, particularly in light of the fact that City's two top-flight triumphs were only secured on the final day.
He said: "Man City have fantastic players. They aren't in decline, they will continue to grow as they have incredible finance.
"The title race is never over, when they won it, it went to the last seconds but they won't take a victory at Selhurst Park for granted.
"Man City have used their money well, the facilities and the players in their team is a reflection of that."
Pellegrini's side won December's reverse fixture 3-0 in what proved to be Neil Warnock's penultimate game in charge, but Pardew has since led a Palace revival.
With eight wins from his 13 games in charge in all competitions, Palace have climbed to 11th - one place above Pardew's former club Newcastle United.
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