The two clubs have slugged it out in the Premier League, particularly over the past three seasons and he sees Jurgen Klopp’s side as his most dangerous opponent,
“In a few years City may have other rivals, but in the last three years the toughest opponent in the Premier League was Liverpool,” said the City boss.
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“I said many times never underestimate the opponents in other leagues - Dortmund when I was in Munich and Thomas Tuchel was in charge was incredible and in Barcelona, Real Madrid was so tough with Jose Mourinho and Manuel Pellegrini - always Madrid were incredible
“Since I arrived here Liverpool, was the biggest rival with the quality they have.
“I have incredible respect for many teams - Barcelona with Luis Enrique when I was at Munich in the Champions League semi-final was the toughest opponents I have faced.”
Guardiola also says Raheem Sterling is one of the best players he has ever managed.
The England forward, having another fine season already, finally scored against Liverpool in the 4-0 win at the Etihad last season and will be looking to inflict further damage on Sunday.
“I think he’s a better player than he was when he arrived and hopefully in four years he will be better than he is right now.,” said Pep.
“So it’s a process. He’s an exceptional player for all the minutes and his physicality and of course he will be there again on Sunday.
“There will be a moment where he takes a rest, but not now.
“He’s a very important player for us.
“I’m pretty sure of his mentality and desire and he’s improved a lot since I arrived and all the credit for him for that, but I hope that in three or four years’ time he will be even better than he is today.
“He is one of the most fantastic players I have had in my career as a manager.”