Manchester City manager Manuel Pellegrini has admitted that it is "very important" to stay in touch with the top two during the final two games of the calendar year.

City host Sunderland on Boxing Day before taking on surprise leaders Leicester City in their final match of 2015, where defeat could see them fall as many as 12 points behind the Foxes at the turn of the year.

Monday's 2-1 defeat to Arsenal left City four adrift of the Gunners at Christmas, but Pellegrini insists that nothing will be decided this early in the season.

"After Sunderland we play at Leicester in the last game of the year, the final games of the first round of fixtures if you like, so we have a chance to cut the lead," he is quoted as saying by The Guardian.

"If we can win our next two games we could be in a healthier position at the halfway point of the season. I think it is very important to stay involved with the leaders, as we are now, but you need to be there on the last day of January too, not just at the start. Then you can see what is needed to win the title in the last three months.

"We lost important points at Arsenal and that was disappointing, but even though it was a six-pointer it was not a decisive game. You never win the title in December."

Meanwhile, Pellegrini has insisted that ongoing speculation linking Pep Guardiola with his job in the summer is not affecting his team.