Both sides have made unbeaten starts to the new league season, but it is the Hoops who currently sit two points above the Gers at the top of the table.
Match preview
On a high after lifting the Premiership title for the 52nd time last season, Celtic have begun the new campaign in exceptional form, winning all six competitive matches and scoring a remarkable 25 goals in the process.
The Hoops maintained their 100% record in the Premiership when they demolished Dundee United 9-0 at Tannadice last weekend to record their biggest-ever competitive away victory.
Ange Postecoglou's side have since secured safe passage through to the third round of the Scottish League Cup after the holders eased past Ross County 4-1 in Dingwall on Wednesday night, with Callum McGregor, Giorgos Giakoumakis, Daizen Maeda and James Forrest all on the scoresheet.
Celtic are now set to face their toughest challenge yet this term when Rangers step onto the Parkhead turf this weekend, but they will be full of confidence and have so far proven exactly why they are the team to beat in Scotland.
The Hoops are unbeaten in their last three Premiership meetings with Rangers, but they have only won two of their last 11 encounters against the Gers across all competitions.
While securing victory against their bitter Glaswegian rivals is imperative, Celtic are sure to have one eye on next week's opening Champions League group-stage match at home to Spanish giants and current holders Real Madrid.
After basking in the glory of qualifying for the Champions League group stage, Rangers have since secured two comfortable victories in two different competitions against Ross County and Queen of the South.
The Gers hit Ross County for four in the Premiership last weekend, with Antonio Colak (2), John Lundstram and Steven Davis all on the scoresheet at Ibrox, before a much-changed side beat Queen of the South 3-1 in the second round of the Scottish League Cup on Tuesday - a game which saw Scott Arfield bag a brace and teenage debutant Robbie Ure score his first senior goal.
Since losing 2-0 against Union SG in the first leg of a Champions League qualifier, Giovanni van Bronckhorst's side have put together an eight-game unbeaten run in all competitions and have scored at least twice on seven of those occasions.
However, their impressive run will come under threat when they lock horns with high-flying Celtic, who have lost only one of their last 20 competitive matches across all tournaments - a 2-1 extra-time defeat to the Gers in last season's Scottish Cup semi-finals.
That cup victory is the only time Van Bronckhorst has triumphed against the Hoops as he is yet to win a Premiership Old Firm derby in three attempts; Only William Wilton in 1892, William Waddell in 1971 and Graeme Murty in 2018 have failed to win any of their first four top-flight meetings in charge of the Gers against Celtic.
Celtic Scottish Premiership form:
Celtic form (all competitions):
Rangers Scottish Premiership form:
Rangers form (all competitions):
Team News
Celtic boss Postecoglou has a fully fit squad to choose from this weekend and is set to recall a number of his regular starters who were rested in midweek.
Defenders Josip Juranovic, Cameron Carter-Vickers, Carl Starfelt and Greg Taylor are all expected to line up in the back four, shielding goalkeeper Joe Hart, while Matt O'Riley and Reo Hatate are set to return in centre-midfield at the expense of Aaron Mooy and David Turnbull.
Star striker Kyogo Furuhashi - who scored a hat-trick last weekend and has netted six times in the opening five league games - is set to lead the line, with Jota and Liel Abada the most likely candidates to operate on the flanks.
New recruit Sead Haksabanovic came off the bench for his Celtic debut in midweek and the winger is expected to begin among the substitutes again on Saturday.
As for Rangers, Van Bronckhorst made wholesale changes for their midweek cup win over Queen of the South, but he is expected to name his strongest possible starting lineup on Saturday.
With centre-backs Ben Davies, John Souttar and Filip Helander all sidelined with injuries, Connor Goldson and James Sands are set to start in the heart of the defence, while Jon McLaughlin is expected to replace Allan McGregor between the sticks.
Antonio Colak, Malik Tillman, Tom Lawrence and Ryan Kent are the most likely candidates to start in the final third, after being rested in midweek, while Kemar Roofe and Ianis Hagi remain on the treatment table.
Alfredo Morelos has missed the last two fixtures due to concerns over his fitness and attitude, and it remains to be seen whether he will be involved at Parkhead.
Celtic possible starting lineup:
Hart; Juranovic, Carter-Vickers, Starfelt, Taylor; Hatate, McGregor, O'Riley; Abada, Furuhashi, Jota
Rangers possible starting lineup:
McLaughlin; Tavernier, Goldson, Sands, Barisic; Lundstram, Kamara; Tillman, Lawrence, Kent; Colak
We say: Celtic 3-2 Rangers
There is never a dull moment in an Old Firm derby and another entertaining contest between two in-form teams is to be expected this weekend.