City's 3-0 win at Chelsea has cut Arsenal's lead at the top of the table to six points, with the two teams to meet next weekend. City also have played one game less.
Speaking on The Wayne Rooney Show, Rooney said City "know how to win the title" and "have a manager who knows how to do it".
"I think City will have the edge on that, just purely the manager and players they've got. They will be able to stay a little calmer than the Arsenal players," said Rooney.
"They will be worried because when you go on a run and lose a few games, you start thinking 'where's the next goal, the next win going to come from?' That negative mindset really has an impact on your performance."
On Arsenal's sudden form lapse, Rooney added: "Whether the fans like that type of football or not, they have to do anything to stop City winning. They need to be resilient enough to stop City from scoring."