Liverpool manager Jurgen Klopp said City’s back-to-back defeats showed they are “human beings” but acknowledged his side will have to be “at our best again”.
“We are not thinking about who is favourite,” he said.
“It is better than I expected but you all know there is still a lot of work to do.”
City thumped Liverpool 5-0 in their Premier League match at Etihad Stadium on 9 September.
Referencing that game, Klopp said: “The quality of City was clear.
“We all know about Pep – best coach in the world. It was clear they would be outstanding but there is no perfect football team in the world.
“They have it most consistently, that is why they will be champions, but we know they can concede goals.”
Forward Mohamed Salah, who has scored 38 goals this season, came off during the first leg, and missed the goalless Merseyside derby against Everton on Saturday.
Asked about his fitness, Klopp said: “Not sure 100%. We train at 5 o’clock.
“It is rather yes than no but we have to see. We will train and then make a decision.”