Manchester United legend Ryan Giggs has insisted that his former club must accept the fact that they 'cannot compete' with rivals Manchester City.

The Red Devils were backed as many neutrals' favourites to win the Premier League crown this term after further strengthening their squad in the summer.

With nearly two thirds of the season now played, however, second-placed United lag 12 points behind the Citizens after playing a game more.

Giggs believes that holding off Chelsea to finish as runners-up is now the best hope for Jose Mourinho, as Man City and fellow big spenders Paris Saint-Germain are at a different level.

"It's not that they can't compete financially, but the profile of the players they have are all very different," he told Sky Sports News. "I think United would take second now and have to concentrate on keeping hold of that. You have to hold up your hands and say City have been the best team, so second place and good runs in the FA Cup and Champions League would represent a good campaign.

"I think they'd have to win every game between now and the end of the season, which is virtually impossible, and expect City to lose quite a few games, which also looks pretty unlikely. It is just those little mistakes.

"They should have beaten Leicester by three or four and then you get a knock-on with the Burnley game, where they were really poor in the first half, and then the Southampton shut-out, so they need to focus on those issues before thinking about challenging City. Jose Mourinho has obviously got a point about Manchester City buying full-backs for £50m and his comment on PSG being able to purchase so much quality in depth.

"I also think United have struggled with the change of managers over the last few years as you've got a mix of players brought in by David Moyes, Louis van Gaal and Jose Mourinho. Chelsea and Liverpool are accustomed to that change and it isn't something United are used to. Ultimately I don't think United are the team right now that can compete with PSG and Man City."

United returned to winning ways on New Year's Day with a 2-0 win away to Everton, ending a run of three successive league draws over the festive period.