As the two clubs prepare for Tuesday night's Manchester derby at Old Trafford, former City forward Marsh believes the Citizens have gone ahead of the Red Devils in terms of results and player personal this season.
In his column for the Daily Mail, Marsh wrote that City have surpassed their neighbours who would struggle to get even one player in their starting line-up.
"Manchester City are ready to dominate now and United will be the second team, the noisy neighbours, Marsh wrote.
"When City have got all the money in the world and can buy the best players in the world, how are they going to turn that around?
"Fundamentally, City have signed better players than United in the last three or four years. United got Robin van Persie but I thought he was a desperation signing.
"How many United players would I put in the City side? None. No-one, not even Wayne Rooney and he is by far United's best player.
"Van Persie is a great goalscorer but he is coming to the end of his career, and he was when they signed him in the first place.
"He's in the twilight whereas Sergio Aguero, a wonderful player, is the future.
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