City are top of the standings, five points clear of second-placed Manchester United.
But more than the lead, it was the way they demolished their neighbours 6-1 in the recent derby at Old Trafford that has made them odds on favourites to lift their maiden premier league trophy.
Roberto Mancini's men built on that stunning result by beating Wolves 3-1 on Saturday to maintain stay unbeaten this season, but Dzeko - who got on the scoresheet at Eastlands - maintains United are still the team to beat.
In comments quoted in the Guardian, the striker said: "I still don't think we are favourites.
"There are still a lot of games to play. We have played 10 matches and are five points clear of Manchester United but for me they are still favourites for the title. We are first and want to stay there but United are United, although we are growing up with every game."
Dzeko also commented on the notorious Champions League game against Bayern Munich last month - when he showed dissent after being substituted by Mancini.
While his actions were overshadowed by Carlos Tevez's refusal to warm-up, the Bosnian revealed he had apologised to the manager later.
I apologised afterwards," he said.
"Sometimes, it is hard when you play badly and don't score goals. Sometimes, you are angry and that is normal. I played for two and a half years in Germany. I wanted to win and maybe score a goal. In Munich we played well for the first 30 minutes and then nothing."
City now travel to Villarreal as they continue their bid to qualify for the Champions League knockout stages.