De Bruyne has been in brilliant form to help City to the top of the table, two points clear of their Manchester rivals, but the Belgium global says neither can afford any slip-ups with so many quality sides in the Premier League.
The Cityzens have taken s stunning lead to the top of the Premier League table, littered with goals and three wins from three in Europe.
United finished three places below City in sixth last season but have been boosted by the form of De Bruyne's worldwide teammate Romelu Lukaku, who has 11 goals in 11 appearances, following his £75 million move to Old Trafford in the summer.
Asked if the Manchester clubs will battle it out for first place, he told ESPN: "For the moment I think so, but everybody's still there".
"I'm just growing on what I've done the last years", he added. "He's doing a great job", De Bruyne said. "I was playing constantly at a good level but I think the team is now playing at a very high level".
"Maybe somewhere later down the road I will go back in some capacity and I'd absolutely love to". For me it makes it easier to find people when they are playing in the way they are playing.
The Brazilian has started the campaign in good form but Schmeichel insists that David de Gea and Thibaut Courtois give City's rivals "an edge" with Ederson still unproven. "The way it looks at the moment is very positive".
"But it's so hard to compare with other teams from other leagues".
And he says his country shouldn't go to Russian Federation if they don't believe they have the capability of winning the competition.
"You need your goalkeeper to save between 12-15 points to win the Premier League", he said. "Obviously I don't think we're favourites, probably one of the outsiders".
"Always we can do better".