Louis van Gaal has admitted that Manchester City are the favourites to win the Manchester derby.
The Dutchman's Manchester United side have home advantage and won 4-2 at Old Trafford last season.
But Van Gaal looked at the league table and argued that leaders City, whose goal difference of plus 16 is nine better than United's are two points and two places above his side.
"When you look at the facts, they are first and we are third," he said in a news conference. "There is a goals difference, a points difference so they are the favourites, I think."
Van Gaal was impressed by the way City came from behind to beat Sevilla in the Champions League on Wednesday.
"I think that that it is a good signal for a team," he explained. "I would be pleased also of course when we are doing that and we are doing that also. We were also behind against Wolfsburg and we beat them."
Van Gaal believes United are a much better side now, but admits he will only be able to gauge how far his men have come at the end of the season.
"I'm happy that we are more balanced in our selection. If you can compete [with City] we have to wait and see," he said.
"Of course we have started very well when you compare it with last year but when you compare [us] with Manchester City we are two points behind.
"We were first at the table then lost at Arsenal. We have to wait and see if we can develop as a team.
"We have more young players in our selection than last year and we have to develop ourselves. Only at end of the season we can say if we have minimised the gap with our competitors."
United captain Wayne Rooney turns 30 on Saturday but Van Gaal declined to say how long he thinks the striker can carry on for.
"It is dependable on the player," he added. "You cannot preview that. It is dependable how he lives, how strong he is, how ambitious, it is dependable on a lot of factors. We have to wait and see."
United will again be without injured defenders Paddy McNair and Luke Shaw and while Ashley Young is back in training, he will not be fit enough to feature.
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