City have been in patchy form all season and after Manchester United won at Fulham to increase the margin to double figures, it took a moment of brilliance from Sergio Aguero to help secure a point against an impressive Liverpool side at the Etihad.
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"The title isn’t over, no. Absolutely no way," the Italian told reporters.
"I believe we can still win it because of last season, and also for the way we have played this season. Two games and the Championship is open again.
"I don’t see why this can’t happen again this year. Last year we caught up eight points in six games, this year we still have 12 games.
"Probably now we need to win most if not all of the games, but this is football, it is not finished and we are confident it can happen."
Mancini went on to insist that United's continued involvement in both the Champions League and FA Cup could impact on their Premier League performance.
"Remember, they still have the Champions’ League and FA Cup and there is still a long way to go, so no, it is not over," he continued.
"For us it is important to play the derby with us two or three points behind and we can win it then."