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Gabriel Martinelli came off the bench to secure a huge 1-0 win at the Emirates on Sunday, their first victory over City in the league since December 2015.
The result leaves Mikel Arteta’s joint top of the Premier League heading into the international break alongside neighbours Tottenham who are both two points clear of the champions after eight games played.
It was City’s third domestic defeat on the bounce, having been eliminated from the Carabao Cup by Newcastle United and beaten away to Wolves – games where they were also without the influential presence of Rodri in midfield.
Despite the slip-up and the poor patch of form, former Manchester United skipper Keane believes Pep Guardiola’s side must still be recognised as favourites for the title.
Asked by Gary Neville if Sunday’s result had changed his mind over the title race, Keane told Stick to Football: ‘No. It was still probably the worst I have seen City play, definitely.
‘Obviously they are having a difficult spell, a poor game. Listen Arsenal gung in there and deserved it. I thought it was really poor quality, it was edgy, but I wouldn’t be writing Man City off.
When you look at the two league games last year, obviously Man City were so far ahead so yeah definitely progress for Arsenal, but I wouldn’t change my mind in terms of who will win the league, I will stick with City.’
Arsenal are in the market to sign a striker in January with Brentford star Ivan Toney said to be open to a move to the Emirates.
With Eddie Nketiah and Gabriel Jesus struggling to provide that instinctive, cutting edge up top, Keane believes Arsenal’s only chance of seeing off City in the title race is to bring in a new centre forward.
“Arsenal can win the league, but they would need that striker,’ Keane said.
‘It’s great when you’re watching a team that can play. That is good in possession, but also physically strong. We’ve seen City over the last few years, they’ve got bigger – obviously set pieces are huge.
‘We’ve seen lads this season come off the bench for Arsenal, they are big, strong, physical players who can get you over the line in tight games.’
MORE : Mikel Arteta blasted for refusing to drop Arsenal star David Raya by Frank Leboeuf
MORE : Ivan Toney would be the ‘final piece of the jigsaw’ for Arsenal, says Ian Wright
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