Liverpool came into the weekend in top spot and are the only team without a loss after the opening six games.
Since City's resurgence in the Premier League, the two teams have won the last four Premier League titles between them - City leading 3-1 - and the Anfield result on Sunday could set the tone for this season's battle.
The intense rivalry extends to the two managers, with Liverpool's Jurgen Klopp and City's Pep Guardiola intent on getting the upper hand.
Klopp knows he has a tendency to annoy Guardiola but insists he does not do it deliberately.
There have been several spats between the two which have played out in the media, rather than personally, in the five years they have been Premier League opponents.
“Not sure if I ever told Pep but I like him, it’s true,” said the German ahead of their meeting on Sunday.
Liverpool 1 Manchester City 4: How the players rated last time out
“From time to time I annoy him with things I say in press conferences that are not meant to say anything bad about him or Man City but then somebody on the City staff tells him that ‘Klopp said this or that’ and I can see in his press conference that he gets really angry. Sorry for that.
“I respect him a lot and I said it before – we think we know a lot about each other but we actually don’t.
“So during the game whatever he says and whatever I say … I want to win desperately, he wants to do that, and we are completely different personalities.
“But nonetheless I like him and I respect him and it’s really one of the biggest challenges for all managers in football to face his teams because they are good.
“If you make a mistake you get punished and that is pretty much the game against Man City always – so you had better not make a lot of mistakes.”
The history between the two clubs stretches back a long way, and the last 20 meetings are in the gallery above. To see the next image - and result - just swipe.