The Reds are intent on landing their first trophy since winning the last of their record eight League Cups in 2012, and are full of confidence after a 4-1 victory over title contenders Man City at the Etihad Stadium in November.
"Maybe from the squad side this (Man City) is the best team in the Premier League," German Klopp, 48, told the BBC.
"Maybe another team will win the league but Man City is really high quality. But you can beat them," he added.
"We have a good chance to make more problems for them than they can imagine in this moment."
Liverpool, who are eighth in the Premier League, are also through to the last 16 of the Europa Cup -- where they will face Manchester United -- after beating Augsburg 1-0 at Anfield on Thursday.
Former Borussia Dortmund boss Klopp, who took over from Brendan Rodgers in October, is adamant his side will be fresh and motivated for their 12th League Cup final appearance.
"This job, in professional football, we do it only to win things -- titles, cups, whatever," Klopp told reporters.
"A lot of players, managers have to work their whole life, and they can be really successful, but never have the chance to win something.
"After a very short time we have the chance. I am sure you will see in the game that we really want to win this."
Klopp said selecting his side for Sunday was proving difficult with so many players available.
"We have had a few (injury) problems since I've been here, but never the problem that we had too many players," he said.
"Making a squad this time is two things -- the best thing I could ever do and the most difficult I had to do until now, because a few players will be disappointed with our decisions, for sure."
Manuel Pellegrini's Man City are fourth in the Premier League and beat Dynamo Kiev 3-1 in their Champions League round-of-16 first leg on Wednesday.
Klopp rejected any notions that City would be disadvantaged by their trip to Ukraine.
"They flew, they did not walk," he said.
"I have some nice pictures in my mind. We will get chances and to use them will be the key. I have to make sure there's no misunderstanding between my mouth and the ears of the players."
(Reporting by Rob Hodgetts, editing by Ed Osmond)
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