Liverpool, Tottenham Hotspur and Everton make up the top six, while Ferguson's former club currently sit seventh in the table.
"City are playing so well, there's no dispute about that," Ferguson told Sky Sports News. "Arsenal must have a big chance - everyone keeps writing them off, but we're into the second half of the season and they're still there.
"You've got Chelsea, Everton, Tottenham, who are starting to do well and United, who always do well in the second half. You've got a fantastic league and we should be proud of that."
Meanwhile, Ferguson has been named as a UEFA coaching ambassador today.