Where to watch live
Kick-off is set for 5.30pm GMT. Live coverage of the game will be on BT Sport 1 and BT Sport 1 HD. Catch the highlights on Match of the Day on BBC One at 10.30pm GMT.
Liverpool and Manchester City are separated by one point on the table in second and third place, respectively and will be keen to maintain the gap to Chelsea at the top of the table.
Jurgen Klopp's team are on a good run of form and will be keen to continue their winning momentum into the new year. Philippe Coutinho is still missing due to an ankle injury, while Joel Matip has also been ruled out with an ankle problem, which has kept him out for the last two weeks.
City, on the other hand, will be boosted by the return of Sergio Aguero, who has served his four-game ban for violent conduct during their loss to Chelsea, and Fernandinho is likely to partner in-form Yaya Toure at the heart of the midfield. John Stones will be missing for the visitors with Kolarov set to partner Otamendi in defence.
Klopp and Guardiola will be meeting in the Premier League for the first time following their encounters in the Bundesliga during their stints at Borussia Dortmund and Bayern Munich, respectively. Their head-to-head record as manager's are split down the middle with both with four wins apiece.
What managers say
Jurgen Klopp: "It's very big for both. When you have a look at the table and see that six clubs fight for [fourth] or [first] it's a really interesting position. Then you have the 'midfield' in this moment with Southampton and Everton and then all the rest are fighting to stay in the league. That means each game is already kind of a final, we know this. But we know on the other hand there are a lot of games to come and you need to be ready for them too. [The game is] the only thing we have to do on New Year's Eve so it's the most important game I can imagine - against an outstanding strong side," via liverpoolfc.com
Pep Guardiola [on Liverpool and Chelsea's advantage without European nights]: Liverpool went so close one year because they had one game a week and last year, for Leicester, it happened the same. This time Chelsea and Liverpool are the ones. We have played seven more than them - and important games like the Champions League - which is why it will be tough.
"But football is unpredictable. We have to do absolutely everything to be there. Sometimes when you believe something is done it isn't. What we have to do is win every game and analyse and see if that is enough," via talkSPORT.
Betting odds (betfair)
- Liverpool win: 11/8
- Draw: 13/5
- Manchester City win: 21/10
Possible XI: Mignolet; Clyne, Klavan, Lovren, Milner; Lallana, Henderson, Wijnaldum; Mane, Firmino, Origi.
Possible XI: Bravo; Zabaleta, Kolarov, Otamendi, Clichy; Fernandinho, Toure; Silva, De Bruyne, Sterling; Aguero.