Juergen Klopp's side are also competing for silverware in the Champions League where they visit Bayern Munich on Wednesday for the return leg of their last-16 tie, after the sides played out a 0-0 draw at Anfield last month.
"I'll be honest with you, the most prestigious competition for me is the Champions League," Salah told a news conference at Anfield on Monday.
"But the dream for the city and the club is the league. So, I'm happy to sacrifice my dream for their dream but if we win both that would great and this is what we are trying to do."
Salah, who suffered a shoulder injury in last year's Champions League final defeat by Real Madrid, later said Liverpool were mentally prepared to take advantage if City lose their way in the home stretch of the domestic season.
"The competition is very tough and we have difficult games left as do they," the 26-year-old added.
"All you can do is win your games and hopefully they will fail in one so we can win the title. My mind is sharp and there is pressure but I'm strong mentally and we have to keep going.
"We will see what we can do at the end of the season but mentally I am ready for everything."
After Wednesday's clash at Bayern, Liverpool return to league action with a trip to 19th-placed Fulham on Sunday.
(Reporting by Shrivathsa Sridhar in Bengaluru; Editing by Christian Radnedge)
