The Reds are currently top of the table and have City and fellow title rivals Chelsea to play at Anfield, and the England international believes that Brendan Rodgers's side are the biggest threat in the run-in.
"Yes, it looks like Liverpool are our main contenders," Milner told The Mirror.
"Chelsea are still in there as well. Hopefully we can rely on the experience which we've got. We've been there, we've won it before. Liverpool haven't in recent times, so hopefully that could help us.
"They are playing so well and we just have to concentrate on our games. Liverpool is never an easy place to go, but especially this season. They are on fire, playing well and deserve to be up there."
City are currently second in the division.