United boss Jose Mourinho splashed the cash once again this summer, completing deals for the likes of Romelu Lukaku and Nemanja Matic.

The Red Devils have hit the ground running in the new campaign, winning each of their opening three games without conceding.

Phelan believes Mourinho now has the squad depth and quality to continue their fine form right up until May and secure their first title since 2013.

Ahead of United's trip to Stoke on Saturday, Phelan told ESPN: "It's been a very good start. I think the fixture list has been kind in a way, but the preparation has been good and that's showing in the results they've got.

"They bought well in the summer. They look physically stronger and mentally more attuned to the job now so it looks as though progress has been made.

"It's a squad that has definitely got credentials now. The Premier League is a difficult league to win and there a lot of other clubs who have invested heavily. I think they have given themselves a real opportunity to be successful.

"The competition has strengthened in the Premier League because most teams now can afford to spend £50m on a player whereas in the past only a few could do that.

"United are certainly in the contest, probably a lot more in the contest than they have in the previous few years."

Phelan added: "A club like Manchester United are always looking for fine tuning. They needed to add to the squad because they are in bigger competitions this time.

"The acquisitions have been good and you can see that in the way they have started the season and the way they have gone about their business. They look capable of going from August through to May.

"United are always in the market for the best players that add to the core of your group.

"Jose has gone for proven Premier League players so they know what it's all about. The only thing they need to get used to is Manchester United because it's different.

"Getting them in early, doing the business early, it always gives you that breathing space to work with those players and for them to get to know each other."