Sir Alex Ferguson feels his squad is 'bearing up well' as Manchester United challenge for honours on three fronts.

Though the season has yet to reach 'squeaky-bum' time, the resumption of the UEFA Champions League later this month signals a renewed intensity to United's campaign.

The Red Devils face Lyon in the Champions League last 16 and also host Arsenal in the fifth round of the FA Cup next weekend.

In the Premier League, the champions trail Arsenal by two points and Ferguson is looking forward to the closing months of the season.

"They've done very well, the team," Ferguson said. "It's a developing team, as I said a year ago, it's a young team that is growing up together.

"The performances this year have been very good. We got off to a sticky start, missing Rooney and Ronaldo, and players weren't 100 per cent fit, but now it's really going well."

The United manager added: "Your confidence is based on what you see on the football field. Obviously the way the team is performing at the moment, and the squad we have got together, gives you that confidence.

"These players have a great team spirit among them. They're hungry players, they never give in as they demonstrated last Saturday at Tottenham. These are fantastic qualities to take into the second half of the season.

"It's going to be tight, no question about that. It's a tough league, it's not an easy league, it's not an amateur league, it's a real, tough, professional league.

"It's bearing up well. My squad is getting stronger. Louis Saha is back next week, Paul Scholes being back is like signing a new player and Ji-sung Park coming back is another big bonus to us.

"The squad is looking strong and I hope that will help us."