Gary Neville has backed Liverpool as the “clear favourites” to win the Premier League title this season, highlighting Arsenal as their main challengers.

The Reds will head into Christmas Day sitting four points clear at the top of the table following their emphatic 6-3 victory over Tottenham on Sunday.

Second-placed Chelsea, who were held to a 0-0 draw against Everton, remain in the title race but face tough competition from Arsenal, who cruised to a 5-1 win over Crystal Palace earlier in the weekend.

Gary Neville praised Chelsea’s performances this season, calling their campaign “impressive,” despite widespread scepticism about their chances before the season began. However, he tipped Arsenal to pose the biggest threat to Liverpool’s title hopes.

“Arsenal have come agonisingly close to winning the Premier League under Mikel Arteta, twice being pipped by Manchester City,” Neville said on his Sky Sports podcast.

“I think the one team Liverpool need to watch are Arsenal if they can get their tail up and close that gap going in March and April.”

The defending champions, Manchester City, appear to be out of the race following a shocking run of form that has left them seventh, 12 points behind Liverpool. Commenting on City’s struggles, Neville remarked, “Man City’s drop-off has been spectacular. I’m not sure anyone really knows how it’s gone so badly wrong.”

While Chelsea couldn’t find a breakthrough against Everton, Neville acknowledged their progress, saying, “Chelsea had a tough game today but they’re doing well and having a good season.”

He also stressed that Liverpool’s biggest challenge could come from within: “Liverpool are clearly the best team in the Premier League at this moment in time. They’re the clear favourites for the title. I think the biggest risk for them is injuries – if they were to lose Van Dijk and Salah that would hurt them.”