Arsenal “must not panic” after defeat at Aston Villa saw Man City close the gap at the top of the Premier League, says Sky Sports’ Gary Neville.

The Gunners’ 2-1 loss at Villa Park was followed by Man City beating Sunderland 3-0, trimming Arsenal’s advantage to just two points. Villa are just a point further back in third.

However, while Mikel Arteta will feel the “breath on the neck” from City, Arsenal must maintain focus and try to remain the consistent force in “the season of inconsistency”, says Neville.

“That’s a game you can lose,” he said on The Gary Neville Podcast about Arsenal’s loss at Villa.

“I wouldn’t be panicking at all if I was Arsenal off the back of that. You’re going to lose a game or two, you just are, and you’re going to win a lot of games.

• Aston Villa 2-1 Arsenal – Match report and reaction
• Man City 3-0 Sunderland – Match report and reaction

“They could sit there and think that Manchester City are a couple of points off them but they’ve had a tough week, Arsenal. You could argue it’s been Arsenal’s toughest week of the season [facing Chelsea away, Brentford home, Villa away].

“They’ll realise that Manchester City have got those types of weeks coming at points in the season as well. I don’t think it’s a time to panic but they’re certainly going to feel that breath on the neck of Manchester City and Pep Guardiola and I think City will think, ‘If we can stay this close until April, May, let’s see what they’re made of.

“That’s what Manchester City have to do, they have to hang in there and sit on their shoulder and see what they’re about and see what they’re made of and see what they’re like in a real title race again.”

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Neville also noted City’s own vulnerabilities and reckons it will be the team which can sustain a steady level through the crucial festive period who will put themselves in prime position for the big prize at the end of the season.

“Man City give you a chance,” he said. “The teams of Manchester City that won the league all those years on the run didn’t give you much of a chance at all.

“[But now] every time I’ve watched them I think, ‘yeah you’ve got a chance of scoring goals [against them]. They’ll get a bloody nose from a time or two.

“But Arsenal are going to have to be reliable and consistent as they have been in the first part of the season to win the league.

“This is the season of inconsistency. Everybody’s all over the place. We’ve seen it with Liverpool, Chelsea [against Leeds], Manchester United on Thursday… The teams that you would have expected to be in around the top six – Tottenham – they’re all over the place.

“Villa were down at the bottom couple of months ago now they’ve risen. So everything’s really strange.

“Christmas is an important period. There’s loads of points to play for. Massive month, December, with more Premier League games than ordinarily in any other month.

“City should be encouraged but I still think that Arsenal are favourites – but not as much as I did maybe a week or so ago!”