Argentina international Aguero is poised to return to side after serving a four-match suspension for a dangerous lunge on Chelsea’s David Luiz when the sides met at the start of the month.

The 28-year-old was allowed to spend time back with his family in his homeland during his enforced absence.

And Guardiola revealed that despite the nature of Aguero's dismissal against Chelsea he would not hesitate to throw him back into such a high-profile Premier League encounter.

“He is ready,” Guardiola explained. “He has come back good from Argentina. Finally he is back after the ban. And we are happy he is back.”

Stones was substituted in the first half of City’s 3-0 victory over Hull on Monday after the England centre-back suffered swelling in his knee.

But Guardiola remains hopeful about the 22-year-old’s chances of playing against the Reds on New Year’s Eve.

City captain Vincent Kompany is set to miss out, however, with an ongoing knee problem while winger Leroy Sane is struggling with a knock.

“John Stones is much, much better,” Guardiola said. “Vincent Kompany and Leroy Sane, I think they are not available to play.”

Guardiola personally scouted Liverpool on Tuesday when he attended their emphatic 4-1 victory over Stoke at Anfield and believes they should be considered major title challengers.

“Yes, they are definitely a contender. It was a good game I saw,” Guardiola said.

“I saw Liverpool this year many times. But it was my day off, my family was not here and I decide to take a car. Thank you Liverpool for inviting me, for the tickets. I saw the game and that’s all.

“I was lucky to play before against Jurgen Klopp and I think we know each quite well.

“There are six teams fighting for the title, especially for the first four positions fighting for the next Champions League.

“I saw the contenders and they are really tough teams. So it will be a good fight until the end of the season.”

Guardiola acknowledged that his players must match the passion of their opponents with City winless in their last 14 league and cup games away to Liverpool.