The two Premier League pace-setters have shared the league trophy for each of the last four seasons with just one point separating them this term.
Liverpool are unbeaten so far but missed the chance to capitalise on Chelsea dropping points by drawing 3-3 to Brentford on Saturday.
City meanwhile have bounced back from their opening day defeat to Tottenham to boast an almost perfect Premier League record since with their only blemish a 0-0 draw against Southampton.
Liverpool team news
Trent Alexander-Arnold's fitness remains the chief concern for the home side after he suffered an injury in the draw against Brentford.
The right-back missed the trip to Portugal in midweek and was left out of Gareth Southgate's England squad for the upcoming World Cup qualifiers.
And Liverpool manager Jurgen Klopp admitted he doesn't expect Alexander-Arnold to be fit to face City this weekend.
Speaking after the Reds' 5-1 victory over Porto, Klopp said: "Trent felt his abductor - in that area he has a little injury.
"Obviously when you have something with your muscle, it's not likely for Sunday - no muscle injury heals that quick."
Liverpool have no other fresh injury concerns with Thiago Alcantara and Harvey Elliott already ruled out with more serious injuries.
Manchester City team news
Pep Guardiola will be once again without influential midfielder Ilkay Gundogan after he picked up a thigh problem against Southampton.
The German scored during City's 4-1 win over Liverpool at Anfield last campaign but is not expected to be back until after the international break.
Oleksandr Zinchenko also remains a major doubt for Sunday's clash with the Ukrainian missing the club's last three matches.
But more positively, John Stones returned to the squad for the 2-0 defeat to Paris Saint-Germain and could start over Aymeric Laporte.