The San Siro club have struggled this season after losing key men Zlatan Ibrahimovic and Thiago Silva in the summer, but Nesta, who now plays for Canadian side Montreal Impact, remains confident his former club will turn their campaign around.
"The papers have been in too much of a hurry to arrange Milan's funeral," he stated to Gazzette.
"It is too early to say that the title is restricted to just Juventus or Inter. I promise you, at the end of the season my former team-mates will be up there.
"How do you explain their crisis? I do not know. A lot of quality players have gone but it wont be long until they recover. They are a positive team and and have the mentality to do it, so watch them climb the leaderboard."
The 36-year old was also supportive of coach Massimiliano Allegri, who has been under considerable pressure from supporters and sections of the Italian media.
"Allegri will pull through, for sure. He is lucky that Milan do not historically have a reputation to burn the coaches. He is a good man and good at his job, so he will be fine."