Manchester City 1, Manchester United 0.

Sir Alex Ferguson has admitted Manchester United have a fight on their hands to retain their Premier League title following their 1-0 derby-day defeat to City at Eastlands.

Despite dominating possession and enjoying the vast majority of chances, for the second time in three outings this season, United failed to find the net.

Instead, Geovanni's first-half effort proved decisive, maintaining Sven-Goran Eriksson's 100 per cent start as Blues boss and leaving their visitors languishing in the bottom five, seven points behind their city rivals.

With Ferguson's team not in action again until Tottenham visit Old Trafford on Sunday afternoon, United could be in an embarrassingly low position by the time they kick off.

And, while no-one in the Red Devils camp is conceding defeat just yet, Ferguson accepts his side must start winning - fast.

''We have given ourselves an uphill fight, there is no doubt about that,'' said the Scot.

''We have to get a win under our belts. We have Tottenham on Sunday. That has become a very important game for us.''

Two points from three games represents United's worst start since 1992, although they did finish that campaign as champions.

A year earlier, City won their opening three matches, exactly what they have done now, with Eriksson's many critics having their harsh words rammed down their throats in no uncertain manner.

''Three games, three wins, three clean sheets. I must be happy with that and I am,'' reflected Eriksson.

''Today was our most difficult game so far.

''Of course, if you gave points for possession of the ball, shots on target and shots off target we would have lost. But we scored a goal and they didn't.

''We have beaten Manchester United and that doesn't happen every day, although we still have a long way to go yet.''

Everything Eriksson touches at the moment is turning to gold.

Derided for buying players on the evidence of videos, Eriksson has seen most of his purchases paying off in fine style over the past week.

Geovanni is one of that number, although it was a member of the City squad who established himself long before Eriksson arrived - England defender Micah Richards - who was at the heart of their latest win.

Time after time Richards got in the way as United mounted their succession of attacks.

At no stage did the 19-year-old look flustered and at no point did Carlos Tevez, Ryan Giggs or Nani threaten to get the better of him on a personal basis.

''It is important to remember this young man is 19,'' said Eriksson.

''I don't remember having a defender that strong and that quick at any age. That is a combination that is very rare indeed.

''He wins everything in the air and can fight with any centre-forward and then, if he makes a mistake, he has the speed to repair it.

''His pace is incredible. At 19, you just don't see that.''

The only downside for Eriksson was the loss of Bulgaria striker Valeri Bojinov to suspected knee ligament damage.

In contrast, the only major positive for Ferguson was the outstanding performance of Owen Hargreaves on his debut.

At £18m the former Bayern Munich man did not come cheap but his energetic contribution to United's midfield largely kept City at bay, even if a lingering knee injury means he almost certainly will not play for England against Germany on Wednesday.

''Owen Hargreaves did absolutely superb," said Ferguson, who insisted there will be no panic at his team's poor start.

"His knees are a bit sore and he will definitely need a few days to recover.

''At this moment in time we have to rely on our experience and make sure we do not get carried away with a knee-jerk reaction.''