Speaking at his presentation with Real Madrid, who Adebayor has joined on loan from City until the end of the season, the former Togo captain feels that Roberto Mancini's men have a "big chance" to win the title.
When asked if City can win the league, the 26-year-old said: "Of course, why not? I think Manchester City have a big chance to win the league this season, with all the players that they've bought, Mario Balotelli, Edin Dzeko, they've got a big squad."
He added: "And at the minute they are playing good football, so they have a chance to win it. It's not going to be easy, don't get me wrong, but I think they will do everything to achieve that because it's a dream of the club."
Adebayor also spoke about his new club's chances of finishing the Spanish Primera Division season as champions.
Madrid are four points behind two-time reigning champions Barcelona at the top of the table, although that is essentially a five-point gap as Jose Mourinho's men lost 5-0 at the Nou Camp and would need something special in the return meeting at the Bernabeu to gain the better head-to-head record.
Adebayor said: "Here in Spain, Madrid are only four points behind Barcelona and I think everyone will agree with me that Barcelona are playing fantastic football at the moment, but in football you just have to keep winning games, and then we have to beat them at home and wait for them to lose points to get ahead of them.
"It's not going to be easy but at the end of the day we have to try and give everything until the end of the season, and we'll see how it goes."
Madrid swooped for Adebayor after recently losing Gonzalo Higuain, their top scorer for the last two league campaigns, to a back injury that could keep the Argentina international sidelined for up to four months.
That left coach Mourinho with just Karim Benzema as his only recognised centre-forward, and the Frenchman has found himself under pressure following a disappointing time with the Spanish giants since his big-money move from Lyon in 2009.