Pep Guardiola believes Liverpool have dropped off in both boxes recently.
The Reds suffered a 3-1 defeat to Leicester City on Saturday, suffering a late collapse despite taking a second-half lead through Mohamed Salah's goal.
Defeat means that Liverpool could well be in seventh when they next play in the Premier League in a Merseyside derby against Everton next weekend.
In contrast, Man City continued their formidable form on Saturday evening as they recorded a comfortable 3-0 win over Tottenham Hotspur.
The victory means City now sit 13 points clear of Liverpool with a game in hand.
Speaking after the loss at the King Power Stadium, which came before City beat Spurs, Jurgen Klopp admitted the gap is already insurmountable.
He said: "I don't think we can close the gap. We are not worrying about the title, we are not silly."
City boss Guardiola responded to this after seeing his side beat Spurs and said he still enjoyed watching Klopp's side play thanks to their quality.
Yet he admitted that their output in both penalty areas has dropped recently.
He said: "It is the same Liverpool that I met in the last years but in the boxes they are not as clinical as they were before.
"The quality of the team is still there. I don't think they drop the quality of press or play, they always create more than the opponent. I don't like to suffer against them but as a spectator, I always enjoy watching Liverpool."
Asked if Liverpool could still be a factor in the title race, Guardiola added: "From what I saw, the way they played today against Leicester, of course we have to lose games but of course they can do it."
Despite Salah bagging his 17th goal of the season in the defeat to Leicester, the Reds are currently on track to record their lowest goals total in the last four years.
Defensively, meanwhile, their 32 goals conceded is the second-worst in the top 10 behind Leeds United.
Just six teams in the Premier League have conceded more goals than the Reds have so far this season.
