Gary Neville shares new Premier League title insight following Arsenal’s defeat and Manchester City’s victory on.

Manchester United legend Gary Neville continues to back Arsenal for the Premier League title this season but has issued a cautionary note to the Gunners.

On Saturday, Arsenal incurred a rare defeat as Aston Villa ended their 18-match unbeaten streak in all competitions with a 2-1 win, closing the gap on the Premier League leaders.

Manchester City also narrowed the margin with a strong performance against Sunderland, leaving Arsenal just two points ahead at the top of the Premier League.

Luckily for Arsenal, their upcoming Premier League match is at home against bottom-placed Wolves, while Manchester City faces a challenging away match against Crystal Palace.

Before these fixtures, Neville urged Arsenal not to “panic” following their loss to Aston Villa, emphasizing that this is a match they “can lose.”

“That’s a game you can lose,” he stated on The Gary Neville Podcast.

“I wouldn’t be panicking at all if I were Arsenal after that. You’re going to lose a game or two; it’s inevitable, but you’ll also win many.”

“They might be concerned about Manchester City being close behind, but Arsenal has had a challenging week, arguably their toughest of the season [facing Chelsea away, Brentford home, Villa away].

“They need to recognize that Manchester City will also face difficult weeks ahead. It’s not time to panic, but they’ll certainly feel the pressure from Manchester City and Pep Guardiola. City will be thinking, ‘If we can stay this close until April, May, we’ll see what they’re made of.’”

“Manchester City needs to hold on and observe what Arsenal is capable of in a genuine title race.”

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Neville later affirmed that the Gunners remain “favourites” for the title, albeit “not as much” as they were prior to this weekend.

“Christmas is a critical time. There are many points left to contend for. December is a huge month, with more Premier League matches than usual,” Neville noted.

“City should take confidence, but I still think Arsenal are the favourites – just not by as much as I did a week ago!”