Following the reigning champions' 4-1 win against the Gunners, fans have admitted that the Manchester United legend knew all along.
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Arsenal's 3-2 win against United earlier in the year kept them top of the league and five points clear of City with a game in hand after 19 matches played.
However, when asked for his title prediction the following day, Neville told Sky Sports: "I don't think City have started properly yet in terms of being serious about this season.
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"They're still messing around a little bit, I think the manager is still rotating, not got [Ruben] Dias on the pitch, [Aymeric] Laporte on the pitch, [Kevin] De Bruyne all the time on the pitch, [Phil] Foden not quite there.
"When they start to purr, which I'm thinking at some point they will because they're great players and serious about what they do, that they'll start to motor on and they'll really hunt City [Arsenal] down and put pressure on."
He added: "I don't know what's going to happen at the end of this season, Arsenal could hold City off but I don't think they will once it starts, the real run-in. It doesn't start until like April, so that's my view."
Neville's prediction has now resurfaced and Arsenal fans have admitted he was right, with one on Twitter saying: "As an Arsenal fan & a realist, I'm gonna be very honest & mention that I agreed with him from the get go."
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Another added: "I had the same view too all along. He wasn't hating. He was only being honest. A true Arsenal fan won't comfortably say we gonna win it cuz it's a long season It hurts tho. But I expected this to happen. Didn't keep my hopes high."
However, one Arsenal fan is still optimistic of their title chances as they said: "Was the trophy presented last night - I didn't see the presentation."
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Arsenal still sit top of the Premier League table but are winless in their last four games and just two points ahead of City.
Pep Guardiola's side also have two games in hand on the Gunners, with their win on Wednesday night potentially deciding the title race.
Arsenal have led the way for most of the season, but City are now on course to win the league for the third consecutive campaign.