The Reds will take on the Citizens in the last eight of Europe’s elite club competition as they look to book their place in the semi-finals at the expense of their Premier League rivals.
Liverpool FC will host Manchester City in the first leg at Anfield on 4 April as they look to make home advantage count against Pep Guardiola’s men.
Jurgen Klopp’s side secured a thrilling 4-3 win over Manchester City when the two teams last met at Anfield in the Premier League earlier this season.
And World Cup winner Matthaus feels that Liverpool FC are more than capable of upsetting the odds and knocking the Premier League leaders out of the Champions League.
Speaking to the Liverpool Echo, Matthaus said: “Liverpool is not afraid to play against Manchester City. They showed weeks ago how you can win against Manchester City.
“They have a good offence, they work better in the defence and this is the key to win titles.”
Liverpool FC will first return to Premier League action this weekend when they travel to Crystal Palace on Saturday afternoon.
The Merseyside outfit are currently in third place in the Premier League table as they seek to try and finish in the top four for the second season running under Klopp.
Liverpool FC finished in fourth place in the table last season.
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