LONDON (AFP) - Gareth Barry believes big-spending Manchester City are on the verge of mounting a serious challenge for the Premier League title.

England midfielder Barry completed a surprise 12 million pounds transfer to City from Aston Villa earlier this month in a deal which is likely to herald a close-season spree by the Eastlands clubs.

City boss Mark Hughes has been given a substantial warchest by the club's Abu Dhabi-based owners and targets like Blackburn's Roque Santa Cruz, Arsenal's Kolo Toure and Valencia's David Villa are high on their wanted list.

Hughes' side only finished in mid-table this season but Barry, who spent 12 years at Villa, said: "You have seen the type of players Manchester City are able to attract, like Robinho.

"I think this club has got everything in place to achieve big things and challenge right at the top, to go from a mid-table team to a team challenging right at the top."

Barry claimed it was City's ambition that persuaded him to move to Eastlands, even though Liverpool were interested in signing him.

"The club put a price on me and Manchester City have come in and paid the money really early on," he said at a press conference on Thursday.

"I spoke to the manager (Mark Hughes). I spent a bit of time thinking, spoke to friends and I am confident I have made the right decision.

"I felt very wanted here. The ambition was the main thing for me."

Barry was close to a move to Liverpool last year after revealing his desire to play in the Champions League, but he insists he is not thinking about might have been.

"It's completely out of my mind, worrying about Liverpool and what could have been. That's all in the past," he said.

"This season it's a different situation. Manchester City have had a bid accepted for me and they made me feel wanted."

Barry issued a letter to fans through a local newspaper after the move explaining his decision to leave Villa Park.

He added: "People made out I was sort of apologising for it. I don't feel a need to apologise for leaving Aston Villa. I just stated my reasons. I had spent 12 years at the club and wanted to state my reasons."