Manchester City impressed Terry in their 4-0 thrashing of Newcastle and he predicted there would be a tough battle for the Premiership crown in 2013/14.
"It has got harder. Manchester United ran away with it last year without being at the top of their game," Terry told Sky Sports.
"I didn't see Manchester United as being excellent all season long and in fact they seemed beatable in a few games I watched. They have a very good camaraderie in the squad and a never-say-die attitude which stems from being under Sir Alex (Ferguson).
"They scored a lot of late goals but I think it is a very tough league and it is between four or five big teams to really challenge.
"Manchester City looked good. I watched their game against Newcastle and even though they (Newcastle) were down to 10-men, I though they looked good.
"They are solid and the Etihad is a tough place to go. They have got a good squad and a good base of English players.
"When the new guys come in they learn what the club and the Premiership is all about."
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