The clubs are both unbeaten in the league this season and are in the top two positions in the table ahead of the Super Sunday clash, live on Sky Sports Premier League from 4.30pm.
City defender Walker is hoping he and his team-mates can make a statement in the match, but acknowledges that Jurgen Klopp’s side are serious challengers
He told Sky Sports: “It’s early days in the Premier League but people can see Liverpool are contenders, just like we are, for the Premier League title with the money they’ve spent, the squad they’ve got and also the manager they’ve got.
“It’s full credit to the manager for what he’s done for Liverpool. He has transformed them into a title-challenging team year in, year out.
“I feel probably whoever wins at the weekend is going to get the bragging rights for being the bookies’ favourite to go and lift the Premier League.
“That’s not discarding Chelsea, Tottenham, Manchester United, Arsenal or whoever else is going to be up there, but we’re both going into the game undefeated and hopefully we can come out on top.”
Liverpool beat City three times last season – twice in the Champions League and also in a 4-3 thriller at Anfield in January when Roberto Firmino, Sadio Mane and Mohamed Salah all scored.
Walker admits that Sunday’s opponents are their “bogey team” and he is aiming to end a winless run at Anfield that stretches back more than 15 years.
“You know you’re always going to get a game there,” he added.
“It’s a tough place to go; they were on fire last time we went, Salah was on fire, Mane and Firmino, and they’ve got some brilliant attacking players.
“Now with Daniel Sturridge coming back and playing well, we’ve got to be careful of that too, but we have to play to our own gameplan, and not think too much about them.
“We have to go there with a point to prove. Looking back on last season, they were our bogey team. Out of the four games, they beat us three times.
“In the last one we were chasing the Champions League so things can be a bit different, but we haven’t won there in a good number of years, so we need to make history and hopefully we can do that this Sunday.”
Kevin De Bruyne could return from injury at Anfield and Walker admits a few of the Manchester City players have struggled for fitness after the World Cup.
But he insists Sunday is their chance to make a statement in their bid to retain the Premier League for the first time in the club’s history.
“We’ve had a good season so far,” he said.
“There’s still room for improvement, a few cobwebs people are still shaking off from the World Cup but I feel that this is a time when we need to come good.
“Sunday is a great time to show we are up for the fight of retaining the Premier League, which no-one has done for a while.”