Chelsea manager Antonio Conte has revealed his side ‘cannot afford’ to compete with both Manchester United and Manchester City, saying he believes the Premier League is now a ‘two-team’ division.

United recently completed the signing of Alexis Sanchez from Arsenal in a deal reported to be worth as much as £180 million, while City spent over £200 million in the summer on new talent such as Benjamin Mendy and Bernardo Silva.

Ahead of the Blues’ Carabao Cup semi-final clash with Arsenal tonight, Conte has now said he and his opponents simply cannot compete any longer with the financial powers of the two Manchester clubs.

“I think, for sure, in this moment there are two teams in this league who are ‘top’. They stay there,” said Conte. “The others have to fight. To fight for a place in the Champions League. It’s not only here in England.

“These two big clubs can  become seriously dangerous for other teams in the world. These two teams are very strong already and want to invest. Alexis Sanchez, only one or two clubs can pay this type of salary.

“We never were in this race [for Sanchez]. Ever. Especially because, I repeat, one of the reasons was this amount of salary.”

Asked which clubs around the world could pay the kind of money United have invested in Sanchez, Conte added: “I don’t know, but, for sure, United. They have paid it. But I don’t know the other teams.”

While he has all but ruled out his side’s chances of retaining the Premier League, the Italian still believes his side are playing well and can find success this season in the domestic competitions.

“For me, this is already a good season because we are doing 120 per cent. I’m doing a fantastic job, the same my players,” said Conte.

“It’s not important if you reach the final or win a trophy or win the league. The most important thing is to see if the coach and players are working hard and very well. This, for me, is a successful season. Last season, I think we did a fantastic job and did a little miracle.”