The Italian, who was sacked by City at the end of last season, believes the squad at the Etihad Stadium is strong enough to overtake Chelsea and replicate the title-winning feat he achieved in 2012.
City are six points behind Chelsea in the Premier League table but have three games in hand on Jose Mourinho's men, who were beaten 1-0 by Aston Villa at the weekend.
Manuel Pellegrini has added to the squad that he inherited from Mancini, who is convinced the Chilean can claim the fourth top-flight crown in City's history.
"I think that Manchester City's the best team," the Italian said after his Galatasaray side were beaten 3-1 on aggregate by Chelsea in the UEFA Champions League. "They have the best players.
"I don't know if Liverpool, also doing very well in this moment, can win.
"I think it will be a fight till the end between City and Chelsea."
Mancini's City ended the club's 44-year wait to be crowed English champions again, and did so in dramatic fashion with last-gasp final-day victory over QPR to seize the trophy from Manchester United's grasp.
