The former England international lifted the top-flight crown at the Etihad Stadium in 2012 and 2014.
He worked alongside some top talents in those campaign, while taking in spells under Roberto Mancini and Manuel Pellegrini.
Milner also tasted FA Cup and League Cup success during his time with City, but he does not hold those teams in the highest regard.
Instead, the 31-year-old, who also has 61 caps for his country, believes the squad pieced together by Jurgen Klopp at Anfield is the strongest that he has been a part of.
Milner told Sky Sports : “I’ve been very fortunate to play in a lot of good teams, with a lot of good players.
“Obviously winning a couple of titles at City, we had some very good players, but as a team this is probably the best team I’ve played in.
“The Man City team were obviously a top side, and arguably had more standout individual players.
“We’ve got a lot of good players at Liverpool too, but I think as a team we play a different style, everyone works together and we need to do that the way we play.
“It’s two completely different teams and styles of play, but two fantastic teams."
Milner will line up against his former employers at the Etihad Stadium on Sunday, with Liverpool making the short journey to Manchester looking to cement their standing inside the Premier League’s top four.