Jamie Carragher believes that Manchester United can reassert their dominance long term over local rivals Manchester City with victory in Sunday's derby at Old Trafford.

Jamie Carragher believes that victory for Manchester United over local rivals Manchester City on Sunday can be the catalyst for the 20-time champions to reclaim their place as the dominant club in the area.

City won the title last year as United finished in their lowest ever Premier League position of seventh, but Louis van Gaal's side currently sit one place above their neighbours in third.

City won the Manchester derby in November thanks to Sergio Aguero's goal, but Carragher thinks that a United victory on Sunday might see the Red Devils finish above Manuel Pellegrini's men.

The former Liverpool defender told the Daily Mail: "If Louis van Gaal's side win, the ramifications for City could be serious. There is no doubt United will spend big again in the summer and, with the full implications of Financial Fair Play kicking in, they might be able to recruit the players that City need.

"United will certainly fancy their chances but they should not take anything for granted. When the teams come out, City will still have the best striker on show in Sergio Aguero, the best midfielder in Toure, the most creative talent in David Silva and the finest defender in Vincent Kompany.

"Van Gaal is starting to put his stamp on United — they have improved since the switch to 4-3-3 — and has big ambitions. City have relished having United in their shade. To keep them there, they need a show of strength."

Meanwhile, City boss Pellegrini has played down the significance of Sunday's derby result.