Chelsea Manager, Antonio Conte has admitted Chelsea can no longer compete with the Manchester clubs in terms of their spending power.

The former Juventus manager, Conte believes United’s spectacular signing of Alexis Sanchez this week on a deal that makes him the best-paid player in England on a mammoth £350,000 a week, and City’s £124miillion summer outlay, only underlines they are out of reach of the rest of the Premier League.

And he predicted that Real Madrid, Barcelona and Paris Saint-Germain will have to be on their guard as well.

“These two clubs can become seriously dangerous for other teams in the world,” he said. “They are strong already and want to invest. For Alexis Sanchez, only one or two clubs can pay this salary.

“There are two teams in this league who are top, and they stay there. The others have to fight. It’s not simple to think about finishing above them.

“We were never in this race for Sanchez because of the salary. But we’re not worried. If you work you can fight these big teams.

“Last year we won the league with a little miracle. But situations change. It’s the truth. If you have money you can have the best players. Otherwise, you find other ways.”

Conte has been unhappy with Chelsea’s transfer policy since the summer, and there is increasing speculation he will leave at the end of this season even though another £52m could be spent this week, with Roma’s Emerson Palmieri and Edin Dzeko set to arrive.

“If a player earns a lot, it’s because he is the best. It’s the same for the coach. If you never win a trophy, you can say you are the best. But the best win.

If you win, ask for more. If you don’t win, don’t ask. You win and can ask, but…”