Sir Alex Ferguson has conceded that Manchester City have the edge in the title race following Manchester United's defeat to Newcastle on Wednesday night.

United collapsed to a 3-0 defeat at St James' Park; their second loss in less than a week after Blackburn won at Old Trafford on New Year's Eve.

Ferguson's side are now three points behind City in the race for the Barclays Premier League crown, but the United boss is not about to press any panic buttons.

"Advantage to them, of course," he told Sky Sports after the Newcastle game.

"[Buy] It's not a time to panic - we have the experience to cope with that."

Demba Ba opened the scoring for the Magpies in the first-half, before Yohan Cabaye fired in a thunderous free-kick to put the home side firmly in command.

Phil Jones then compounded United's misery with a calamitous own goal, and Ferguson admits his team were not up to the task on the night.

"We started reasonably well," he said. "But they scored a fantastic goal and it really picked everyone up in the stadium.

"The second was a killer for us. We didn't make enough of our possession."

He added: "They didn't tear us apart, but they were a handful.

"The story of the game was they had two fantastic strikes which put them in the driving seat."

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