Manuel Pellegrini's side, who were third favourites on the eve of the season after a relatively quiet summer, are now the bookies' top choice to win the title, with Chelsea and Arsenal both slipping down a place.
City were hugely impressive in their 3-0 win over West Bromwich Albion despite the absence of star striker Sergio Aguero.
The club are now available at as short as 13/8, with Chelsea available at 15/8.
Arsenal have dropped a long way after their opening day home defeat to West Ham, with all the pre-season expectation now available at around 5/1 - Manchester United are also available at that price.
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