Liverpool are on a four-match winning run in the Premier League. [Reuters]

Former defender Steve Nicol believes Liverpool are 'hot favourites' to beat Manchester United, when both sides go head-to-head at Old Trafford on Sunday in the Premier League.

Both clubs have witnessed a change of fortunes in the current campaign as the Red Devils have dropped down from their table topping performances.

The Merseyside club are still in contention for the league title as they sit third in the league table with 59 points from 28 matches, seven behind leaders Chelsea who have played two matches more.

The reigning English champions find themselves in unfamiliar zones, struggling to break into the top four. David Moyes' side have only managed to gain 48 points from 28 matches so far and sit seventh in the table, eleven points away from fourth placed Arsenal.

"This is the first time in a long time Liverpool go there as hot favourites. I've never been seen confident of getting victory at Old Trafford in my life. Brendan Rodgers has quietly gone about Liverpool transforming into arguably the best attacking side in the league. This is as good an opportunity as Liverpool have ever had of going to Old Trafford and dominating," Nicol told talkSPORT.

United are unbeaten in their last four league matches and they registered a 3-0 victory in their previous league fixture against West Bromwich Albion at the Hawthorns last weekend.

However, Brendan Rodgers' side were not in action last weekend but are brimming with confidence. They are yet to lose a game in the last nine league matches played this year; registering seven victories so far. Liverpool are currently on a four-game winning run with their previous result being a 3-0 victory at the St Mary's Stadium against Southampton on 1 March.

"It's certainly a very prestigious game - two of the greatest and most successful clubs in Britain. To be a part of it is always special. We know the magnitude of the game; we know it's a very important fixture for our supporters," Rodgers told Liverpool's official website.

"To go to Old Trafford will be equally tough for us, but we've got great belief and confidence in how we've been playing and we'll look to bring that into the game," the 41-year-old concluded.