City were not so long ago considered favourites to run away with the league title but their air of invincibility has all but vanished in the space of just two games.
Roberto Mancini's side have taken just one point from two matches, during which time they have failed to score against West Brom and Sunderland, who inflicted only their second defeat of the campaign at the Stadium of Light on Sunday.
In contrast, the Reds are still reveling in their 3-1 win over Newcastle on Friday and Liverpool manager Kenny Dalglish insists City's super-talented squad hold no fears for his side.
"They are a fantastic side but so are we so we are not going to go there and be scared," he said.
"It is all well and good saying they have loads of money but they have a good team.
"The money they have everyone else would love to have but unfortunately they don't. We will go and play whichever 11 they put on the pitch and it doesn't matter how much they cost.
"But we have the utmost respect for what they have done, we will respect and appreciate their ability.
"They are certainly a really difficult side to play against and we have our work cut out but we will work hard and fingers crossed we will come home with a result."
Dalglish's Liverpool held their own in their last encounter with City at Anfield in late November but could only manage a 1-1 draw. However, this time the Reds could be boosted by the return to fitness of captain Steven Gerrard after two months out with an ankle infection.
The England midfielder has made two substitute appearances, totalling 52 minutes, and scored against the Magpies.
Dalglish could be tempted to give him his first start since late October against City.
Meanwhile, Tottenham can cement their place in the top four by taking maximum points from West Brom's visit to White Hart Lane on Tuesday.
Spurs are currently third in the league, two points ahead of fourth-placed Chelsea with two games in hand.
In Tuesday's other game, Sunderland travel to the DW Stadium to play Wigan hoping to build on their shock victory over league leaders Manchester City,
Manchester City vs Liverpool
Tottenham vs West Brom
Wigan vs Sunderland