The left-back has struggled with injury since joining City from Monaco but could be available for selection at Newcastle on Tuesday evening.
However, skipper Vincent Kompany remains side-lined.
“Mendy is much better,” said Pep. “Kompany is still out for the time being."
The boss also looked ahead to the clash at St James’ Park, comparing the Magpies organised style to that of Burnley.
“Newcastle play similar to Burnley,” he said. “Of course, every team is completely different. The past two seasons, it has always been tough against them.
“It was always tight, and I imagine that will happen tomorrow. They defend very well, but I have a feeling we can attack better and concede fewer set-pieces.
“Rafa Benitez’s success everywhere he has managed speaks for itself.”
City playing 24 hours before Liverpool does not make a difference in the title race according to the City chief.
The Blues could reduce the gap to the leaders to just one point – for at least 24 hours – with a win at St James’ Park – but Pep feels who plays first doesn’t matter.
“The only thing we have to do is to win the games,” he said.
“Every game for us is a final; it is the same with cup competitions. What should we do when playing after Liverpool? Win. What should we do when we play before? Win.
“All the teams want to fight for title. We have the pressure and feel the pressure, but we have to handle it. I think there are 14 games left.
“There are many points left to win. We can’t think too much about that and think what we have to do. Same with Burnley… we have to focus. It’s the only way to be consistent.”