Manuel Pellegrini thinks his Manchester City squad is the best in the Premier League

Manchester City manager Manuel Pellegrini believes his squad remains the strongest in the top flight as they prepare for their first Premier League home game of the season.

The reigning champions host last season's runners-up, Liverpool, at the Etihad Stadium live on Sky Sports 1HD on Monday night.

Pellegrini’s men are second favourites to retain their title with Jose Mourinho’s Chelsea heading the betting following their recruitment of Spanish duo Cesc Fabregas and Diego Costa.

But the Chilean insists he would not trade his squad for any other in the Premier League.

“I think we always have to be better, we have to improve every season,” he said. “It doesn't matter what happens with the other squads.

"Here in the Premier League you always have four or five strong teams that can win the title and if we want to continue winning titles, of course, we must improve.

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"But I always say my players are the best players in the Premier League and we have the strongest squad, not only attackers but also defending, and in the whole squad.

"Other teams also have strong squads but if you are analysing the players I prefer mine."

City have bolstered their squad with the additions of defenders Eliaquim Mangala and Bacary Sagna, midfielder Fernando and goalkeeper Willy Caballero.

England midfielder Frank Lampard has also signed for the club on loan from New York City and Pellegrini has welcomed the extra competition for places for a spot in City’s starting XI.

"As a manager, the most difficult decisions are when you don't have players,” he said.

"When you have good players it's easy because when you have so many games in the season you need to change them.

"Normally we will play around eight matches a month so it doesn't matter. It's important to win titles."