City are now six points behind league leaders Liverpool with four games to go, and Savage thinks that the last two results have ensured the title is now out of reach.
Savage told The Mirror: "When the medals are handed out next month, I believe the Mancunian Blues will look back on this as the week that cost them dear.
"At a time Manchester City were revealed to be the highest-paid sports team in the world, Manuel Pellegrini chose a bad week to blow the title.
"Sorry, but when your players earn a basic £100,000 per week on average, you can't use mental fatigue as your excuse for a 2-2 draw at home against the bottom side."
City host West Bromwich Albion on Monday.