The Merseyside club are top of the Premier League, narrowly ahead of Sunday opponents in the table and a victory for either side could bring them closer to securing the trophy.
Henderson, while admitting that Liverpool will need to be on their guard to stop City's talented side, thinks that the Reds may have a crucial edge in terms of work rate.
He told the Daily Star: "They have some very good players. Yaya Toure is one of them, but they have other great players in other areas so everyone needs to make sure they are ready and I am sure we will be and right up for it.
"We have some good players ourselves and if everyone performs to the best of their ability we will have a good chance.
"We are full of confidence at the minute and we are playing some great stuff and working really well for each other."
City are currently third in the table, four points behind Liverpool and two behind Chelsea, but have played two games fewer than their title rivals.