The club's best finish in the competition so far is the semi-finals, but under Pep Guardiola, the team are dominating on all fronts.
The North-West outfit have a 16-point lead at the top of the Premier League table, and they remain in contention for silverware in the EFL Cup and FA Cup.
On Tuesday night, Guardiola's players impressed again as they earned a 4-0 victory over Basel in the first leg of their last-16 clash in the Champions League.
According to Sky Sports News, when asked if his former club could win the trophy, Mancini said: "Maybe they can. Manchester City improved a lot this year. Now the level is very high and they could have a chance to win the Champions League."
During his four-year spell in charge of City, Mancini guided the team to the league title and FA Cup.