Sir Alex Ferguson insists his Manchester United side can still compete with Barcelona and Real Madrid.
United, who crashed out of the Champions League at the group stages, currently trail Manchester City by two points in the Premier League.
And Ferguson is determined to push City all the way in the league this season before returning to the Champions League next season, where the aim will be to progress much further than was the case this year.
"We've had our ups and downs and we've been unlucky with injuries," said the Scot.
"We've had a lot of them, which you don't expect, and we've got people like Nemanja Vidic and Darren Fletcher out for the whole season.
"You can replace your best players for a game or two but you really notice the difference over a longer period and that's what's happened to us.
"Even so, we're fighting hard to win the Premier League again and there's a lot of merit in that. Obviously I'm optimistic about our chances."
Ferguson saw his side exit the Champions League as a result of two poor results - a draw and a defeat - against Basel.
But he insists the club will soon be challenging Europe's elite again.
"I feel we had the ability to go all the way to the final," he continued.
"Luck wasn't on our side but I think we've got the ambition to compete with Barcelona and Real Madrid.
"I don't feel we're that far away from them. I'm sure we'll show that soon."
