Manchester City captain Vincent Kompany has insisted that Manchester United are not their only rivals for the Premier League title ahead of Sunday's derby.

Manuel Pellegrini's side are currently two points clear of Arsenal and United at the top of the table, and many are suggesting that the Manchester derby could be a key game in the title race at this early stage.

However, Kompany believes that there are more sides capable of challenging than ever before.

"United have obviously gone into the transfer market big and they have built a squad to be ambitious and built a squad to win trophies," the Belgian told NBC Sports.

"That obviously stands in our way of achieving our goals but the thing is, I look at all the squads and who is not building squads to win titles in this country? It is crazy. They are not the only ones to watch out for, unfortunately."

Kompany is expected to return to the starting lineup after being named on the bench in City's last two games.