Roberto Mancini’s side have set the pace at the top of the table for the majority of the season, and remain favourite to claim their first league title since 1968, though rivals United remain hot on their tail, just two points behind.
Harry Redknapp’s Tottenham have also find themselves in the leading pack this campaign, but after a recent defeat to the Citizen’s left them five points off the pace, the left-back has now dismissed their chances.
"We are in a two-way battle with United at the top of the Premiership and I think it will be like that until the very end," Kolarov told Serbian website B92.
"Of course, that raises the tension so every game in every round our two clubs play will be on a high note.
"We are playing well, have a two-point advantage and they [United] are coming to our ground three rounds before the end.
"Maybe that game will be the decisive one, but I think we are the better team and must show that on the pitch."
Roberto Mancini is expected to bring more silverware to the Etihad stadium following their FA Cup success last season and the 26-year-old is aiming for glory in the last two competitions they remain in, the Premier League and the Europa League.
"At the beginning we played in four competitions, now we play in two. We want to win a trophy in both as that is the target of the club and our surroundings,” he added.
"We are on a good run, so we will see what we can do."
Carlos Tevez returned to the club recently after over four months in exile, and has expressed a desire to be included in the side’s end-of-season run-in following a public fallout with Mancini, but Kolarov says it is an issue that has not affected the players.
"We don't talk about it in the locker room and nobody knows how it will develop.
"I don't have anything to comment about it, it is a thing between the two of them. As I said, no one is talking about it and, in the end, it's not for the players to comment on such situations."