City go to Crystal Palace today after a famous Champions League win at Real Madrid in midweek.
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"I feel like we're in a very good place," Dias affirmed to Sky Sports. "But I feel like we can still be a lot better.
"If that's 70 per cent now and we have 30 still to go or if that's 80 and we have 20 or whatever, I don't know what it is, I feel like we can be even better.
"That's a good feeling to have at this time of the season. We still have a few extra gears to go through.
"But I acknowledge that in this moment I feel like we're strong, I feel like we can compete, seriously."