O'Neill's side finished 12 points ahead of Manchester City last season
Aston Villa manager Martin O'Neill insists Manchester City should be considered among the favourites to win the Premier League this season.
O'Neill, whose side finished sixth in the league last term, expects City to mount a serious assault on the top four after spending around £80m on players.
"City may not be favourites to win the league but they should be," he said.
"This Manchester City side is going to be so, so strong that they can withstand anything."
Fuelled by the wealth of City's owners, the Abu Dhabi United group, manager Mark Hughes has spent a huge amount this summer.
The Welshman started his spending with the £12m capture of midfielder Gareth Barry from Aston Villa.
Following that City have added three forwards to the squad with the capture of Roque Santa Cruz from Blackburn (£18m), Carlos Tevez from Manchester United (£25m) and Emmanuel Adebayor from Arsenal (£25m).
Defender Kolo Toure has followed from Arsenal for a reported fee of £16m.
And it seems certain Hughes will add to his squad even further before the transfer window closes on 31 August.
"They have as good a chance as anyone of winning it," stated O'Neill.
Despite City becoming a major threat to Villa's hopes of breaking into the Premier League's top four, O'Neill revealed he is eager to see Manchester United, Liverpool, Chelsea and Arsenal challenged this season.
"This situation at City reminds me of Chelsea about five years ago - you can have great success if you can accumulate a group of top-quality players over a short period of time," he added.
You think, 'Well, you got quite close last year and suddenly another club has just stepped over you'. It kind of punctures you
Martin O'Neill
"There's part of me that's actually quite excited to see how they will do. It's as if the Premier League has been reinvented.
"I would say the top four has become a genuine top five. They're even seemingly putting it beyond the sides who would be competing within the top four."
Villa looked as though they might win a Champions League spot last season but fell away late on, winning only two of their final 13 games and finishing 10 points adrift of fourth-placed Arsenal.
However, in what has been a quiet summer in the transfer market for Villa, O'Neill has added only England winger Stewart Downing to his squad at a cost of £12m.
And O'Neill, whose side finished 12 points ahead of 10th-placed Man City last season, admitted City's activity in the transfer market has made it even harder for his team to compete at the top end of the table this season.
"I'm deflated by it," he admitted.
"You think, 'well, you got quite close last year and suddenly another club has just stepped over you'.
"It kind of punctures you. I'm sure if you asked David Moyes at Everton he would think the same."
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