Chelsea will feel that they could still have a major say in the destination of the Premier League crown, with the Stamford Bridge outfit far from out of the running.
They are, however, considered to be outsiders as Liverpool have opened up a two-point lead at the summit and third-placed City have two games in hand on those above them.
The Blues' trip to Anfield on Sunday could help to make the picture a little clearer, as a victory in that contest would provide vital momentum heading down the final straight.
Milner believes City are capable of handling the pressure - having come out on top in dramatic fashion back in 2012 - but wonders whether Liverpool can hold their nerve as they look to end their 24-year wait for top-flight glory.
He said in The Sun: "There is pressure on all the leading clubs and it's all down to who handles it the best. It should be a great game on Sunday.
"We've been here before and have won the title recently, whereas Liverpool haven't won for a long time.
"As the finishing line gets closer, games that looked easier a few weeks ago prove to be anything but.
"We have the ability and experience to finish the job and it's going to be an exciting finish for the neutrals.
"Hopefully, we can see it through and win it again in slightly less dramatic fashion - but if that's what it takes, I'd be happy to do it all again."
The battle may well go down to the final kick of the season, with Liverpool and City aware that any slip-ups at this stage will open the door to a rival and potentially leave them empty-handed.
Milner added: "It's still in our hands because if we win seven games, we'll be the champions, but Liverpool are in the box-seat because they are top and have the points already on the board so for me, they have to be favourites as things stand.
"Anfield is never an easy place to go at the best of times and they are top of the table and really playing well, scoring lots of goals and playing great football.
"Everyone is talking about the Liverpool game but we have a lot of tough matches coming up so we have to take it one match at a time and just concentrate on our results and not what the other teams are doing.
"Liverpool are flying at the moment and are looking very strong.
"We know that if we win all our remaining games, we would win the title - and the same applies to Liverpool - so it's definitely one of the biggest games of the season."