City travel to Old Trafford on Sunday to face local rivals Manchester United in what is the most eagerly anticipated derby for years.
Having spent over £100million on new talent in the summer Blues boss Mark Hughes will be hoping his side can continue their 100 per cent start to the season at the Theatre of Dreams this weekend.
Giggs has never known City as title challengers in all his time at United but the Welshman accepts that two teams challenging for honours is good for Manchester.
"It's hard for the United fans to say it but if City emerge as a trophy-winning team I suppose it would be good for Manchester," he told the News of the World.
"The whole footballing world has been focused on Manchester for the last year or so because of the trophies we've been winning and what City have spent.
"It has to be good for the city to have two teams at the top. Hopefully we will be at the very top, ahead of them.
"It's good they're no longer the spoilers. They are up there with a lot of quality."
Top dogsGiggs insists there will be no notion of wanting to put City firmly in their place on Sunday with the 35-year-old insisting the champions will just go in search of three points.
"We are not really more intent on reinforcing United's status as top dogs, though, I don't think we ever look at games like that," he added.
"We just look at it as it is - it's a derby and we want to win. You never want to lose a derby but you have to look at the bigger picture.
"There are three points at stake and hopefully we can take those points and get further up the table to where we want to be."
The game also sees former Red Devils favourite Carlos Tevez return to Old Trafford for the first time since joining City in the summer and Giggs reveals the Argentine will be welcomed with open arms by the United players.
"I think Carlos will get a good reception," he stated.
"He was really popular in the dressing room during his time here. In the two years he was here we won two Premier League titles and the Champions League and he was integral to that.
"He'll get a warm welcome from the players. We will have to wait and see how the fans have taken to him going over to City. You can never tell I think it will be half and half."