The Citizens will host Jose Mourinho’s men knowing that a victory over their Premier League rivals will secure their first title success under Pep Guardiola.
The Eastlands outfit are 16 points ahead of Manchester United with seven games to play in the 2017-18 Premier League campaign.
Manchester City were 2-1 winners against the Red Devils at Old Trafford back in December following goals from Nicolas Otamendi and David Silva.
Guardiola’s side will have the distraction of a Champions League quarter-final at Anfield on Wednesday night before the Manchester derby three days later.
Former Manchester United defender Ferdinand admitted that the Citizens will be favourites to beat Mourinho’s side at the Etihad Stadium on Sunday afternoon.
“You can’t change it, if they’re going to win it against United then that’s the way it has to be,” Ferdinand told BT Sport.
“They’re the best team in the league. They’re favourites at home to beat Manchester United.”
Manchester United are two points ahead of third-placed Liverpool FC in the Premier League table in the fight to finish as runners up behind Manchester City.
The Red Devils haven’t beaten Manchester City in the Premier League since April 2015 when Louis van Gaal’s side were 4-2 winners against their bitter rivals.
The 20-time English champions signed Chile international Alexis Sanchez in a swap deal from Arsenal in the January transfer window.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news