Gary Neville believes the "buzz is back" at Manchester City and they have emerged as the early front-runners for the Premier League title.
The Win HotSport pundit was at the Etihad Stadium on Sunday to watch Manuel Pellegrini's side demolish champions Chelsea 3-0; a result which saw them installed as title favourites by the bookmakers.
And Neville says the decision to give manager Manuel Pellegrini a new contract has helped to build confidence in the squad.
"They have stuck with him and they all look invigorated again. They look like the buzz is back.
"There is a little bit of a spark in the ground, the fans look happier and to me at this moment in time they look like the early runners.
"Whether I go along with the bookies and dismiss Chelsea after one week and move them from favourites all of a sudden to be second favourites I'm not sure, but it's a good start for City. They deserve credit for that."
Neville has accused City of failing to build on their title successes in 2012 and 2014, but he has seen promising signs already this term.
And he has encouraged Pellegrini to add more players to his squad before the transfer window closes to reduce the burden on Yaya Toure in central midfield.
He added: "In these last two seasons, we have all accused them of lacking pace on the counter-attack with (David) Silva and (Samir) Nasri in the wide areas and with the team not changing enough after the first title that Mancini won three years ago.
"Now we are starting to look at a slightly different team. I still think they need one or two more. I still think that Yaya Toure, as a central midfielder in a two as the season goes on, playing Wednesday-Saturday with Champions League games, is a problem. I think they need to resolve that.
"But I have to say they look brighter, more energised and more up for it than they did at the start of last season.
"They were far better [against Chelsea] and should have been 3-0 up after 20 minutes when it was Aguero versus Begovic. I've never seen Chelsea as disjointed and as vulnerable as we did do in the first half."
Neville was also full of praise for £49m summer signing Raheem Sterling, insisting the England international's displays against West Brom and Chelsea have impressed him.
"I think he has developed, in the two games I've seen, a very good relationship with Aleksandar Kolarov," he said.
"I think he brings pace. David Silva playing centrally is a benefit of having Sterling there as a genuine, good wide player.
"It just works all round for me having Sterling at Manchester City. I think he'll get better service. I think he played well today without being what I would call outstanding, but he played the position well.
"Ivanovic had an uncomfortable afternoon. A couple of times he went round him and he got booked. I think it's been a good, solid start for Raheem Sterling without being, what you would say, spectacular.
"The relationship with Kolarov and Silva is promising for Manchester City and teams watching them now are going to have to deal with what is a massive threat down that left-hand side."
For more from Gary Neville - including his views on Chelsea's early-season struggles - listen to the Gary Neville Podcast now.
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