The boss said he is a huge admirer of the Foxes as a club and Brendan Rodgers as a manager when facing the media ahead of Saturday's clash.
The Foxes have beaten City two out of the last three meetings, including a shock 5-2 win at the Etihad last season.
But the City boss admits he always enjoys playing Leicester and invariably takes something away from each meeting.
“For the last however many years Leicester are one of the top contenders - a top-class team,” said Pep.
“I am a big fan of their manager; I learn a lot watching his teams.
“They have top sporting directors; they sign perfectly well for what they need and Leicester away is always a tough game.
“But we are ready for the challenge.”