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The Reds head into the match as the holders following their penalty shootout win against Chelsea in last season's final, with City winning the previous four.
It's the perfect game to kick-start domestic action following the World Cup and the clash is good news for the other sides involved.
When asked if he thinks any of the remaining EFL clubs could go all the way, he said: "No, I don't think they will."
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However, he soon added: "Although saying that, every one of those teams, all 14 other teams will be absolutely delighted it's Manchester City versus Liverpool.
"One of the big-hitters is going out. As you said, and rightly so, this is kind of Manchester City's trophy, they win it most years. Pep Guardiola takes this seriously.
"It's the first trophy to win, set the precedent straightaway, get a trophy on the board. A big club like Manchester City, it's not good enough just to win that but no matter what happens, you've already got your first one.
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"I think every single team will be delighted that Manchester City are playing Liverpool."
City beat Chelsea 2-0 to reach this stage of the competition, with Liverpool needing a penalty shootout to progress past League One outfit Derby County.
MK Dons, Lincoln City, Gillingham, Blackburn Rovers, Charlton Athletic and Burnley are the only clubs outside of the Premier League to remain in the Carabao Cup.