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A run of 14 Premier League games unbeaten - including nine straight victories - has propelled Liverpool to the top of the table, two points above second-placed Chelsea, while City are four off the pace in third.
However, City's destiny still remains in their own hands as they possess two games in hand over Brendan Rodgers' leaders.
That means Pellegrini's charges will still hold the advantage providing they do not lose Sunday's match at Anfield.
The City manager will not allow his side to play for a draw, however, and believes it is not in the team's mentality to play in that fashion.
"Maybe I am wrong but I always think in the same (way) as a manager - if you play to draw, you will lose," he said.
"So we are going to play to win. Of course, after the game, if we couldn't win the game and we draw it's a good result, but we are not going to play against Liverpool thinking we must draw.
"We don't know to play in that way."
He added: "I am very happy for football. For attractive football, creative football.
"That's why I think Liverpool have a lot of merits in the year they are having so far, because they are an attractive team and they always score.
"Maybe I also am wrong, but I prefer important teams, big teams, than those that just want to win 1-0 and give all the possession of the ball to the other team, score one goal and always defend during 90 minutes."
