A derby defeat to the Red Devils at the Etihad Stadium saw City slip six points adrift of their arch-rivals in the race to secure domestic dominance.
City were, however, able to bounce back with an impressive display in a 3-1 victory over Newcastle United, suggesting they have already got the derby result out of their system.
Garcia believes Roberto Mancini's side can now kick on through the festive period and into the New Year, with Saturday's showing on Tyneside letting United know that they are not going to have things all their own way.
"I don't know if it's the best half, but we definitely played very well," the Spanish midfielder said in the Manchester Evening News.
"If we maintain those standards I think we can chase down Manchester United.
"If we play as well as that, we are going to be very difficult to stop and, if we continue to have that attitude, we'll be very hard to beat."
The Premier League title battle is already considered to be a two-horse race, with City and United expected to slug it out until the end of the season.
Garcia believes it would be foolish to rule out the likes of Chelsea just yet, but concedes that pipping Sir Alex Ferguson's side to the post should be enough to see the Blues get their hands on major silverware.
He added: "I don't agree that only United can stop us winning it. The good thing about the Premier League is that anyone can pull off a surprise.
"There are other teams who can push up the table and challenge for the title. But if we finish above United, I think we will win the league.
"It's still very early, there are still a lot of games left to play, so it is too soon to just say it is only the two of us. Chelsea are not far away."
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