Manchester City may fall out of the Premier League title race according to Graeme Souness.

Manuel Pellegrini's side have dropped to fourth following Saturday's 3-1 home loss to league leaders Leicester City and Souness feels the managerial situation, with Pep Guardiola set to replace the Chilean in the summer, could have an adverse effect on the playing group.

"Announcing that the manager is going at the start of February isn't a good thing. It can't be a good thing," he said on Sky Sports.

"It wouldn't surprise me if City fall away now. The speculation was there and has been there for years - poor Pellegrini has lived with it for a couple of years.

"There will be elements in that dressing room that can't be happy because they're not playing all the time, so for him to go... they'll be rejoicing in that, quietly.

"That will have an influence. It's not a healthy situation and it's just not something we are used to in this country."

City are now six points behind Leicester and sit one point behind both Tottenham and Arsenal who occupy second and third respectively.