Manchester City captain Richard Dunne insists his team have nothing to fear as they prepare for their first derby of the season with Manchester United.

City head to Old Trafford on the back of last night's disappointing home draw with Watford, which nevertheless propelled them into the top half of the table for the first time since August.

Although Stuart Pearce's men were nowhere near their best, they never looked like being on the wrong end of a shock defeat to the relegation-threatened Hornets.

And, while City continue to find goals hard to come by, Dunne feels their increased defensive solidity allows them travel to Old Trafford with optimism.

"Any time you move up the league it is a good day, so at least we can go into the derby with no fear," said the Republic of Ireland international.

"If we could just get the breaks up front, our season would be a lot better but we have shown our spirit because at the end of last year, that was a game we could easily have lost.

"But we are a lot more solid at the back now and we are still full of confidence."