Defeat in Merseyside would leave the champions nine points behind Jurgen Klopp's side in the table, while a victory would take them to within three points and also lay down an important psychological marker in the title race.
The Citizens head into this game with a poor record at Anfield, with the club's last away win over Liverpool in the league coming in 2003.
Here, Sports Mole looks at how Guardiola could line up for this crucial fixture.
Guardiola confirmed on Friday that the muscle injury sustained by Ederson in Atalanta had ruled him out of the trip to Anfield, meaning that second-choice keeper Claudio Bravo - sent off during the week - will wear the gloves on Sunday.
Fernandinho is almost guaranteed to start in central defence, with the Brazilian's excellent radar and composure with the ball giving City extra poise at the back, but it remains unclear as to who will partner him.
John Stones and Nicolas Otamendi were used alternately against Southampton and Atalanta respectively, meaning that Guardiola has a tough decision to make - one that will end in favour of the Argentine, if only because he is less likely to produce a defensive mistake in the white-hot Anfield cauldron.
Following his heroics in goal on Wednesday night, Kyle Walker will be pleased to return to his more familiar position of right-back, while Benjamin Mendy looks likely to feature on the other side in light of a strong performance against Atalanta.
The role of Ilkay Gundogan, just like the role of opposite number Fabinho, will be crucial for when it comes to exerting control over the game. Klopp will be mindful of the fact that the German has struggled at Anfield in the past.
Completing the midfield will be the potentially lethal duo of Kevin De Bruyne and Bernardo Silva, both of whom are capable of pinning Liverpool in their own half. They will be expected to find space and calm in what promises to be a tight and furious midfield battle.
Having missed a penalty in the same fixture last season, Riyad Mahrez will be determined to stamp his authority on this game along with former Liverpool player Raheem Sterling, who is in excellent form this term, scoring 13 goals in all competitions for his club.
Up front, Guardiola looks likely to continue his policy of alternating between Gabriel Jesus and Sergio Aguero, the club's all time top goalscorer and their primary goal threat. The latter has never scored a goal at Anfield; the game on Sunday would represent a brilliant moment to break his duck.body check tags ::