Three wins from its last five games have seen the newly-promoted side move out of the relegation zone, but it now faces a team which is yet to drop points at home.
Manuel Pellegrini's free-scoring side has been unstoppable at home in the Premier League this season, winning all nine top-flight games and scoring 37 goals in the process.
Thursday's 2-1 victory over Liverpool, which was the league leader ahead of the clash, underlined City's title credentials once again as it seeks to win back the crown it lost to rival Manchester United last season.
History in this fixture is also on City's side, with the hosts having won their last four matches against Palace, while it has not been beaten by the London club for 12 years.
However, one must go back to Jan. 2005 for the last top-flight clash between the two sides and the last time they met in any competition was in the League Cup back in 2009.
City's leading scorer Sergio Aguero remains on the sidelines due a calf injury and it remains to be seen if his fellow Argentine Martin Demichelis is available to return after missing out against Liverpool due to a knock.
Micah Richards (hamstring) and Stevan Jovetic (knock) will once again be unavailable.
Palace makes the journey north buoyed by a 1-0 Boxing Day win at Aston Villa that lifted it out of the relegation zone for the first time since September.
The London outfit has won three games since Tony Pulis was appointed as manager just over a month ago to raise hopes it can avoid the drop.
Marouane Chamakh will be available to return from suspension at the Etihad Stadium after the striker missed the win at Villa due to a one-match ban, while Dwight Gayle will be hoping to be given a start after scoring the winner in the Midlands.
Pulis still has a lengthy injury list to contend with as Adlene Guedioura (broken ribs), Jerome Thomas (groin), Jack Hunt (ankle), Paddy McCarthy (groin) and Glenn Murray (knee) all remain sidelined.
Stuart O'Keefe (knock) and Kagisho Dikgacoi (hamstring) are also doubts.