The Frenchman – with seven games to go - says the title is still effectively in the Gunners’ hands.
Arsene Wenger has stressed that Arsenal are still favourites to win the Premier League title despite continued pressure from Manchester City.
After two straight 2-2 draws against Liverpool and West Ham United, the Gunners saw their gap – initially of eight points – cut to four points as City sustained pressure in a bid to retain the title.
"No, no, no. I would say Arsenal still [will win the title]," Wenger replied when asked if City were favourites to win the league race.
"What you want in this position is to have things in your hand. If Arsenal win their games, they win the league so that’s an ideal position with a few games to go.
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The Citizens were lucky to pick up more points on Saturday that took them close to Arsenal.
"Of course, Man City have an opportunity when they play Arsenal and that could be the decider in the championship.
"I still fancy Arsenal, I’m not completely objective here, but I do. We will also have to see how much the Champions League takes out of Man City."
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Neville likens the title race to a marathon that has ups and downs in the process.
Should the Gunners win the title, it will be even easier for them next season, according to Wenger, who guided the London club to their last Premier League title in 2004.
"Arsenal and these players have not been in the position to win the league before," the Frenchman added.
"Hopefully, they win it this year, and next year it will be easier. But now, when you have never won it, there will be a moment in the season when the tension comes in.
"When you start thinking more about the need to win than the process and how to play, it gets difficult. I felt that at Arsenal when I was there too."
Arsenal will be desperate to return to winning ways when they face struggling Southampton on Friday.