Jurgen Klopp’s side head into the game after having played out a thrilling 3-3 draw with Arsenal on Merseyside on Wednesday, as Joe Allen’s late equaliser rescued a point for the Reds.
United were also forced to settle for a 3-3 draw on Tuesday night as they were twice pegged back by Newcastle United at St James’ Park.
Former Liverpool man Redknapp is expecting to see an open game at Anfield on Sunday but is ultimately tipping the home side to come out on top and heap further misery on Louis van Gaal’s struggling United side.
Redknapp told Sky Sports: “This game will kick-off at 150mph, everyone will be so fired up. Key players need to make the difference.
“I predict Liverpool will just come out on top and secure an important win for Klopp and the development of his team.
“We can’t get too excited about where they are right now – despite their performance against Arsenal, they are prone to strange performances and strange results.
“But a win over their rivals will be a big moment for them – and another blow for Van Gaal and United.”
United head into the game in sixth place in the Premier League table and two points behind Tottenham in fourth.
Liverpool, meanwhile, are ninth in the top flight table ahead of Sunday’s showdown.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news