The TalkTV host was a guest on Times Radio alongside the former Oasis frontman with Arsenal and City set to fight it out at the Etihad on Wednesday night.
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Just five points separate the two teams, though City have two games in hand and a victory for them would see them become the heavy favourites to win a third Premier League title in a row.
But Morgan has confidently insisted that not only will his beloved Gunners triumph, that City will end up without a single trophy.
Speaking on Times Radio, Gallagher said: "It is life or death for Arsenal tonight, they need to win. I think I wouldn't like to call it.
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"I guess we will know when the game starts, seems obvious to say. We will see what Arsenal team gets off the bus."
Morgan replied: "I keep hearing that Manchester City are the best team in Europe, the best team in the Premier League of all time, blah blah blah.
"But the last time I checked, Arsenal are five points clear at the top of the Premier League and have been top all year. So I am not quite sure why City fans are under the massive delusion that they are so great if we are so far ahead.
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"I have been a bit wobbly, I've had 36 hours of food poisoning after some dodgy sushi so I am hoping I won't be feeling as sick tomorrow.
"Look, to be serious, City are obviously a great team, they are in their own backyard. I do remember in 2002, Arsenal were five points clear in the Premier League.
"We went to Manchester United and we had to beat them there, and I was there and we beat them 1-0 Sylvain Wiltord. It was a fantastic win, we won the league and I am feeling exactly the same way now.
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"The expectation has been good for Arsenal, it has moved from Arsenal to City, now all the headlines are saying 'It's in the bag, City have won the league, Arsenal have choked'.
"I think, because the weight of expectation has been reduced, we can now go there, do them in their own backyard and win the league."
Gallagher retorted: "We are so confident because we have the best striker in Europe, the best manager in the world and we are playing the best team in the country tonight.
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"Arsenal are there on merit and I'd rather be in their position than ours because we are still playing catch-up.
"If we lose tonight and win our games in hand, we are still just two points behind so City going down the stretch, they have done it before, the players have done it before.
"I was at the Aston Villa game where they were 2-0 down with 15 minutes to go and we turned it around so we have got the experience if that counts for anything.
"But look, it is going to be a great game because both teams are going to go for it. But I hate predicting outcomes of matches because this league will make a fool out of you.
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"I hope it is a great game and I hope Piers is back on the gin tomorrow."
Morgan replied in jovial style: "All I can say Noel is… I am definitely mad for it. I definitely think tomorrow morning I will be waking up with morning glory. And you just need to heed one bit of advice: Don't look back in anger, my friend."
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Gallagher groaned back: "Oh dear, there is a reason why you don't write the headlines anymore!"
Morgan said: "Look, City are a fantastic club, they are a fantastic team, there is no doubt about it. But they are built on oil money and I am sure that Noel shares my misgivings about that.
"Whereas Arsenal are built on clean money, renewable energy and I think we are going to bring some of our renewable energy to your oil bunker tonight and restore some faith in British football."
Gallagher hit back: "You keep filling up your little Nissan Micra, mate."
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Morgan snapped: "It is an Aston Martin Rapide." To which Gallagher replied: "Well, you fill that one up as well and think of me laughing in your face."
The Britpop legend was asked what is more likely, a City treble or an Oasis reunion and Gallagher might have left some fans disappointed when he said: "The treble is probably more likely.
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"As difficult as it is going to be, I would say that is more likely."
Morgan then interjected and said: "I am sorry but there is absolutely zero chance of City winning the treble. Arsenal are going to win the league, United are going to roll you over in the FA Cup and Real Madrid are going to knock you out of the Champions League.
"We are going to be sat here in four weeks time with you lot completely potless and I'll be drinking some champagne supernova."
Signalling the end of the interview, Gallagher replied: "There speaks a cricket fan!"
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