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The new Premier League champions travel to the Etihad Stadium on Thursday night, 23 points clear with seven matches still remaining.
While Liverpool have set an incredible pace that could yet see them break City’s record haul of 100 points they achieved two years ago, Pep Guardiola’s side have not matched their form of the last two title-winning seasons - losing eight matches already, more than the six of the last two campaigns combined.
“Liverpool had a great season, they hardly dropped points so it is so tough to maintain that level for such a long time,” Germany international Gundogan said.
“On the other side, we have to stop dropping points unnecessarily. Games that we have to win, we didn’t. I remember a game at Newcastle where we conceded a goal in the last minute and dropped two points there. We played a game at home to Wolves and lost the game.
“There are so many games where we made mistakes and were just unable to win these types of games.
“Still, we are second, it is not a bad season I would say. We know where we have to improve next season and if we are able to do that again we will be in the title race.”
Gundogan played for Liverpool boss Jurgen Klopp at Borussia Dortmund before his move to City and says he is lucky to have worked for two of the best managers in the world.
“Both are amazing managers, there is no doubt about that,” he added. “If you are a great manager you have to have a great personality. This is something they definitely have in common.
“When it comes to the game they both focus on different things. Pep is maybe more about positions, dominating the ball while Jurgen is maybe more like winning the ball and trying to score goals as quick as possible with high intensity.
“I just think they are great human beings and the football world should be grateful that we have these two personalities.”
City can still make it a memorable season with an FA Cup semi-final against Arsenal later this month followed by the Champions League in August and Gundogan says there is no reason why they can’t target winning both.
“It is definitely exciting,” he said. “We still have two great competitions that we can win. We are playing to win it so that is our aim. It is not going to be easy but I think we have a chance to win both.
“Obviously, we have to improve still and play well because there is no room for mistakes, you have to be crucial. These games are crucial.”