The biggest game yet of the English Premier League calendar will see the Manchester rivals United and City face off in a top-of-the-table clash.
Three points separate the two at the top, with City capable of usurping league leaders United with a win at the Etihad on Sunday.
"Challenges are what we're made of," Sir Alex Ferguson said. "I've been lucky that, in my time here, I've been involved with great competitions against individual teams: Liverpool, Arsenal, Chelsea and now City. It's fantastic. There are no dull moments.
"Chelsea did (a similar thing, when Roman Abramovich took over) it and we recognised it immediately.
"What they did well was start seasons quickly. They had almost gone by the time we got to October. We couldn't play catch up with them -- we never got near them.
"So we changed our programme in preseason and made sure we started the season correctly. In that third season we did that and we won the league.
"That's the great thing about this club. We can accept challenges and we don't run from them. We move on and we always try and improve where we think it's necessary. In the main, I think we should take great credit for that.
"This season we've responded to (City's challenge) by adding (Robin) Van Persie and (Shinji) Kagawa. Kagawa is on his way back (from injury) now, but van Persie has been unbelievable. He's scored 13 goals already. His intelligence and maturity definitely bring an improvement to the attacking side of our game."
United will be without wingers Nani and Antonio Valencia, while Ferguson won't risk Nemanja Vidic and Kagawa despite the duo's return to training. Tom Cleverley will be assessed just before the game.
City have been boosted by the news that David Silva has been passed fit, while Gael Clichy and James Milner could also be available.
Mancini still believes United are the team to beat this season. "United are better than us at the moment," he said. "Last season was important for us. We won the first derby 6-1 and our mentality changed.
"But they have three more points than us at the moment. They were a strong team already and they bought Van Persie and Kagawa.
"They bought a player who had scored 25 goals last season. If we continue to work we can improve."
To watch Manchester City vs Manchester United Live Stream, click here.
Expected lineups: Manchester City: Hart; Zabaleta, Kompany, Nastasic, Maicon; Garcia, Toure, Nasri, Silva; Tevez, Aguero.
Manchester United: Lindegaard; Evra, Ferdinand, Evans, Rafael; Carrick, Fletcher, Young, Scholes; Rooney, Van Persie.
Prediction: 2-2
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