Brendan Rodgers' title-chasing side have been hailed as the league's most attractive side.
Sunday's clash between the teams at Anfield will have a significant bearing on the outcome of the title race, with only two points currently separating the table-topping Reds from City, who still have two games in hand.
Brendan Rodgers' side are currently enjoying a 14-game unbeaten streak and will be eyeing a 10th consecutive win in the league as they home in on their first championship for 24 years while Manuel Pellegrini is aiming to lift the crown in his first season at the Etihad Stadium.
Liverpool are just 10 goals away from breaking a scoring century this season while City are only six behind, with 84, but speaking exclusively to HITC Sport, ex-Reds defender Beglin feels that his former club have overtaken their North West rivals for turning on the style this term.
He said: "I think for the first half of the season, probably the entertainment was all from Man City at home. Now it's Liverpool, home and away.
"Considering what the expectations were at the start of the season where Champions League football was the immediate target for Brendan Rodgers, I think all Liverpudlians are in heaven at the moment with what's at stake.
"It's just a great position to be in and I just hope now after the entertainment, the excitement they've provided, I hope they can hold their nerve because that's what it's going to come down to now.
"The tension will creep in and hopefully they will deal with it."
Beglin was a member of Liverpool's legendary 1986 side that won both the league championship and FA Cup under Kenny Dalglish, and believes that the Anfield club can still consider the current campaign to be a success even if their title bid ultimately falls short.
"I think when we get to this stage now, even though it was unexpected, because you're in the position you want to see it through," he added.
"I think they'll probably feel, considering the football they've played, that if they do fall a little bit short, it will still be an outstanding season.
"There'll be a disappointment about but right now, as things stand, they're in a very good position. If they win all their games, they will be champions - and that's all their thinking about.
"If they do fall short, there will be a lot of disappointment but I think on reflection in the summer they'll look back and think that this is the foundation for something a lot bigger."