Manchester City must accept that they may not be able to compete with the top teams in Europe at the moment, manager Pep Guardiola has said.
City's 2-1 defeat by Manchester United in the Premier League on Saturday was their fourth of the campaign and left the defending champions third – 14 points behind leaders Liverpool.
Guardiola's side were ripped apart by United on the counter-attack and they looked a shadow of the side that won the domestic treble last season.
"That is the level we face, against Liverpool, United, Barcelona, Madrid, Juventus - they are the teams we have to face and the reality is maybe we are not able now to compete with them," Guardiola told Sky Sports.
"We have to improve and accept it and move forward. Maybe we need to live that as a club to improve, to accept the reality now and improve."