It comes after the Saints pulled off a shock 2-0 victory over Pep Guardiola's side in the Carabao Cup on Wednesday, to book a semi-final clash with Newcastle United.
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First-half goals from Sekou Mara and Moussa Djenepo proved too much for City to claw back but it was the aggressive approach of Nathan Jones' side that impressed Pennant the most.
"They came out the blocks absolutely flying and I think that's the way to go about playing against City," Pennant exclusively told talkSPORT.
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"If you just sit back, they will pick you off like they did against Chelsea and if it's not working in the first half, they can bring on £160m [worth of talent in the] second half and then pick you off again.
"But when you close them down, don't give them that time, you see what the outcome is."
Guardiola fielded a much-changed starting eleven at St Mary's but Southampton' intensity would have been more than a match for a full-strength City side.
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Erik ten Hag's side are in their best run of form since the Dutchman took over, having won eight-consecutive games across all competitions.
United currently sit in fourth place, four points adrift of City and looking to avenge October's crushing 6-3 defeat at the Etihad Stadium.
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This weekend's derby represents arguably the most evenly matched clash between the pair in recent memory as United look to claim their first home win against City since March 2020.
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