The Reds will kick-off at Anfield with a two point lead over second-placed Chelsea and a four-point gap between themselves and City, currently third, although Sunday's visitors to Merseyside do have two games in hand on both their title rivals. Liverpool may have been beaten 2-1 by City at Eastlands on Boxing Day but they have dropped just five points at Anfield all season. And Henderson believes Liverpool have the pressing game to knock City out of their stride.
"They have some very good players," Henderson said. "Yaya Toure is one of them, but they have other great players in other areas so everyone needs to make sure they are ready and I am sure we will be and right up for it.
"We have some good players ourselves and if everyone performs to the best of their ability we will have a good chance," the English international added ahead of a match where the club will mark the 25th anniversary of the Hillsborough disaster that killed 96 Liverpool fans.
"We have a lot of young lads in the team with a lot of energy and great work-rate, so I think that has really showed, pressing high up the pitch. Steven Gerrard (the Liverpool captain) has been fantastic in the deeper (midfield) role, expressing his passing, and that has been a major point for us.
"We are full of confidence at the minute and we are playing some great stuff and working really well for each other. We have to keep doing what we have done all season. It is a big game, but at the same time we have five big games left.
"The fans have always been brilliant, but I am sure it will be bouncing again on Sunday and they give us a little advantage."
Henderson has established himself as a first-team regular this season after struggling to fit in last term and is now looking at a place in England's squad for the FIFA World Cup™.
"I have enjoyed playing football, I have improved as the season has gone on and I feel a lot more confident," Henderson explained. "But that is just down to learning from the lads and everyone fighting together in training. I feel as though I can help the team in games and I try to help other people as much as I can and that goes for everyone.
"You can see everyone is in it together."