The Hornets have been one of the surprise packages so far this season, as they have collected eight points from their opening four matches and are yet to taste defeat in the top-flight under boss Marco Silva.
The Hertfordshire outfit have also kept clean sheets in their last three league matches, although both their victories this term have come away from Vicarage Road, while they have never beaten City in the Premier League, losing four and drawing just two.
Watford's last victory over the Citizens came way back in 1989 and they will have to do without defender Younes Kaboul, who sustained a hamstring injury against Southampton last time out, although Kiko Femenia has recovered from a head complaint.
Roberto Pereyra could also feature, although Sebastian Prodl, Craig Cathcart and Mauro Zarate remain sidelined through injury, while Miguel Britos is suspended.
City will head into the contest on the back of emphatic victories against Liverpool in the league and Feyenoord in Europe.
Pep Guardiola's side have now won three matches on the spin, while they have also won six successive games against Watford, including a 5-0 victory on their last visit to Vicarage Road in May.
Captain Vincent Kompany is expected to once again miss out due to the calf injury he sustained while on international duty, although Raheem Sterling is available after serving a one-match domestic ban against Liverpool.
A point will be enough for City to move to the top of the standings on a temporary basis, while Watford need a win to achieve that feat for the first time since September 1982.