City are still unbeaten in the league ahead of the clash at Anfield.
Downing told the club’s television channel: “I think we should look forward to it and say ‘Why can’t we beat them?’
“It’s a great incentive for us. Obviously they are coming off a defeat in Napoli so they will be right up for it.
“They are a top team with many, many great players, not just in the 11 but on the bench. We are going to have to be right up for it and start well. If we don’t they will punish you, which they have shown against the top teams this season.
“It has the makings of a cracking game. We are at home at Anfield so I’m confident we can get a result.
“But we have belief in our own ability and confidence is flying, especially the way we won the game (against Chelsea) because it was difficult circumstances in the second half and we nicked it right at the end.
“Training has been really intense and we are really looking forward to the game. Inside the club we have the belief that we have a really good team but we have quietly gone about our business and got some good results.
“We made a big statement on Sunday by beating Chelsea on their home turf and they don’t lose there very often.
“We are going about our work quietly and that’s the best way to do it.”