Pep Guardiola's men are a whopping 15 points behind champions Chelsea, with runners-up Tottenham eight points clear of third-place City ahead of the last game of the season.
City are not yet guaranteed Champions League football for next season, with Guardiola ending a season trophyless for the first time in his managerial career, but Kolarov is adamant they are better than anyone in the division.
"We are far and away the best team in the league," Kolarov told Sky Sports.
"If you do not win trophies at our club it is probably not a great season but we have improved a lot. We are a much better team even now from the start of the season.
"We are going to be there to win trophies again and I'm sure we are going to win.
"The main target for this club is to win domestic trophies and of course win the Champions League. The target of every big club is Champions League finals and the Champions League trophy.
"The most beautiful football is in Europe in the Champions League and that is a target for the team and our club for next season."