FERNANDINHO is sure Manchester City can be competitive in the Champions League despite losing to Bayern Munich.

The Brazilian believes City can take heart from their performance in the Allianz Arena, though it ended in a 1-0 defeat after a last-minute goal from their former defender Jerome Boateng.

It was a blow for the champions, who after three years doing little more than gaining experience in the competition hope to crown this time.

Bayern dominated the match but Fernandinho has no doubt the Barclays Premier League champs can still challenge for the prestigious trophy.

He said: "I think we can compete, especially when we played well here.

"We created chances to score and could have had a penalty. Unfortunately we conceded the goal in the last minute. In the Champions League you need to keep your concentration to the end."

City's star was keeper Joe Hart, who produced a string of brilliant saves.

"He showed his quality," Fernandinho said. "He showed why he is the England number one."

The result leaves City already playing catch-up in a tough Group E.

Their next opponents, Roma, opened with a 5-1 win over CSKA Moscow.

First they must switch attention back to their league title defence and Sunday's visit of leaders Chelsea. City have now not won in three games, with the Munich loss following a defeat by Stoke and a draw at Arsenal.

Fernandinho said: "It is not easy to take for a big team like us but the best way to recover our confidence is to win the next game. Already we're thinking about Chelsea. We have to win this game.

"We need to win points to move up the table."

Fernandinho has been easing his way back into action after his involvement at the World Cup.

The 29-year-old midfielder said: "I am trying to recover my best fitness and performance.

"This was the first time this season I have played for 90 minutes in a game."