The Manchester City striker has been out with a hamstring injury since March but could make a return for the vital fixture at the summit of the Premier League
Aguero has not featured since limping out of the second leg of City's Champions League defeat to Barcelona last month with a hamstring injury, but Pellegrini confirmed on Friday the forward is ready to play a part at Anfield.
Four points separate City from leaders Liverpool, with Pellegrini's men having played two games fewer, and the Chilean is hopeful the return of Aguero can pose problems for Brendan Rodgers' side.
"Sergio is OK. He worked all week with the squad normally, so he doesn't have any problem," he said.
"It's very important [to have Aguero back]. He's a top player. It's very difficult for their defence to stop him and so it's very important for us."
Pellegrini, whose only injury absentee is set to be Matija Nastasic, maintained his belief that Sunday's match will not necessarily determine who wins the Premier League.
"It's a very big game, it's the team who are at the top of the table. Liverpool have had a great season, so this is an important game," he added.
"But I don't think it will decide the title. Every game is a big game now until the end of the season.
"The biggest game is every week for me.
"It's important but if we beat Liverpool and lose against Sunderland and West Brom we are not going to win the title.
"Of course the team that wins this game has more of a chance to win the title but if you think this is the finish of the Premier League, I think it is a mistake."