The two North-West clubs have emerged as serious contenders for the 2013-14 Premier League crown, with Jose Mourinho's Chelsea also in the running, sitting two points behind the current league leaders.
A win for the Merseysiders on Sunday would see them open up a seven-point lead over third-placed City, although Kompany does not believe that his side would be out of the title race should they slip up at Anfield.
|MAN CITY LATEST
|16/1||Manchester City are 16/1 with Bet365 to beat Liverpool 1-0 at Anfield|
"It's a great game for neutrals. The Premier League is such a competitive league now and it's good there are different teams involved. For years it had been the same teams but now it could be Liverpool, it could be City or it could be Chelsea.
"Obviously this game is a defining game and it's great to be involved. It will be difficult but, at the same time, if you do something special you will never forget those moments."
And Kompany was giving nothing away over how he plans to deal with Liverpool's potent strike duo of Daniel Sturridge and Luis Suarez, while adding that he relishes being involved in the big games.
When asked about the 'SAS', he added: "Let's talk about it after the game! I can only say I love playing in these games – this is what I live for. I want to play against the strongest and the best. I think it gets the best out of me – I'm looking forward to it.
"I love the pressure – it's something that I need. This game has all the ingredients so it's perfect. We'll play against strong strikers, strong players, a strong team. You never have the guarantee you will have a good game or you will win but it is something worth fighting for and I like it that way."