After Manuel Pellegrini's men lost 3-2 to Liverpool at Anfield in a pulsating encounter, the Reds took their title fate into their own hands with a seven-point buffer on City, who had two games in hand.
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Wins over Everton, Aston Villa and West Ham will secure City their second league win in three seasons, although Nasri believes it is now imperative they take the chance that unexpectedly fell their way.
"Now we cannot hide anymore. We are three games away. We have to play like champions and show we deserve it," the Frenchman said.
"We have to understand that now we are in this position, it's a miracle. We thought that Chelsea would beat Sunderland (in April) – they didn't.
"We thought Chelsea would go to Liverpool with a second team and lose - but they won.
"Now that we are here, it doesn't matter where we are playing, we have to get a result and win it because it's a miracle we are still here.
"We have a league to win. We cannot fail.
"People say we are the favourites. But we have to win our games and the next one is really tough. We have our fate in our own hands and that's most important."
Nasri, however, warned his team-mates that they do not have to delve too deeply into the past to recall a favourite falling when they were expected to win.
"It's hard to be the favourites and win it. Look at Bayern Munich in the Champions League. They were the favourites but got smashed at home by Real Madrid.
"When Liverpool were the favourites, they lost to Chelsea. When Chelsea were favourites, they lost to Sunderland.
"Maybe it's better to be in behind then at the end sneak out and win it. That's the best way."