The striker squandered a glorious chance for Spurs at the Etihad Stadium last season prior to the hosts winning with a last-gasp penalty and hopes to make up for it on Sunday
The north London club overturned a two-goal deficit in the last edition of this fixture before the Englishman failed to reach a cross which would have given his side the lead.
The hosts then went on to win a 90th-minute penalty which was dispatched by Mario Balotelli, and Defoe admits he still thinks about his wasted opportunity.
He told The Mirror: “We should have won. If I am honest I felt throughout the game we were the better side.
“I played up front on my own, they had five in midfield. I scored, Gareth scored. It was 2-2 and then we had that chance.
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“Gareth went down the left and, to be fair to him, he tried to make it easier for me. It was similar to the goal I scored against Maribor on Thursday night.
“He played it across the box so that I could just tap it in. But I dont know if I just misjudged it or if I hit it a bit too hard.
“I just stretched and I missed it. I was convinced that if I’d got to it I’d have got it in. After that, they got the penalty and scored to win the game.
“Looking back I think maybe we were not to win on that day. It was all a bit mad."
City posted a disappointing 2-2 draw with Ajax on Tuesday which has all but ended their Champions League hopes this season, but Defoe expects them to bounce back.
He continued: “They’ve got a great manager, great players and its interesting the way people write them off so quickly.
“Yes, they may not have had the results they’d like in the Champions League but they are still a quality outfit and it may just take one game to turn their season around.
“You can never take teams like City lightly. Some of their players are the best in the world."
The 30-year-old, who surpassed Teddy Sheringham's scoring record for Spurs with a hat-trick against Maribor on Thursday, went on to hail the impact of new boss Andre Villas-Boas on his form.
“The manager is one of those people that just wants you to enjoy your football. If you are scoring goals and playing well he keeps you in the team.
“He’ll ask me how I am, how I’m feeling, We’ll sit down and talk about ideas going into games. His man-management is fantastic."