He claimed that their spending in the summer, along with keeping their top players means they are expected to challenge for the title.
The Express report Conte said: “I think two Manchester teams are doing very well.
“We know last season both teams were very good. They improved with good signings.
“They bought really good players and they were able to keep their players. United and City have improved a lot.
“I am not surprised.”
Conte was also full of praise for Eden Hazard, who shone against Atletico Madrid after a start to the season that was interrupted by injury.
“We must be very happy because Eden Hazard’s performance was amazing and it was the first big game for him after his injury.
“His answer was fantastic and positive. He had a great link with Alvaro Morata and I am happy for Michy Batshuayi but also Willian played very well.”
Keeping Hazard fit and firing is one of the most important things Chelsea have to do this season – especially if they want to go further in the Champions League – and after their win over Atleti, the general consensus seems to be the Blues are the side who look like they could go the furthest from the Premier League clubs.