Bayern, who beat PSG in last year’s final to lift the trophy, already have one foot in this season’s quarter-finals after their dominant 4-1 victory over Lazio in the away leg of their last-16 tie.
Meanwhile, City and PSG both won their away legs against Borussia Monchengladbach and Barcelona respectively, putting themselves in strong positions to progress to the next round.
And ex-City defender Richards feels his former side are second favourites behind Bayern to win the competition but isn’t getting too ahead of himself given their surprise exit in the quarter-finals last season at the hands of Lyon.
‘My top three would be PSG third, Man City second at this moment in time and then Bayern,’ Richards told CBS Sports’ ‘¡Qué Golazo Podcast!‘.
‘But I don’t want to get too excited because we’ve seen what happened in the Champions League with Lyon.
‘Everyone was expecting us to win that and it didn’t happen.
‘They’re still in all four competitions this season and as soon as you take your eye off the ball… as soon as your start looking at games down the road, you forget the challenge that’s in front of you.
‘I believe they’ve evolved from last season and they’ve got more confidence.
‘Will they win it? I’m not sure. Have they got a better chance? Definitely.’
‘When I see Bayern Munich I don’t think we are favourites,’ the Spanish boss said after City’s win over Gladbach.
‘If people say we are favourites, we have to accept it, but a team who, in their whole history, has been to a semi-final once? OK, they say it, we have to accept it.’