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.”
The City boss was also asked for his early impressions of Jack Grealish, who could make his 100th Premier League appearance at The King Power Stadium.
Grealish was in sparkling form during England’s midweek draw with Poland, where he was repeatedly fouled by Polish players.
“It is a short period that we have been together, I still have the feeling he will get better.
“The time so far with us has been really good.”
The City No.10 was the most fouled player in the top flight last season, but Pep is unconcerned with such statistics.
“What I am concerned is with how he improves for himself,” he said.
“I don’t know if it’s his skills on the ball (that draw the fouls).
“When he plays, he does the actions for himself and the team. The opponents can stop him and it can be a foul.
“Sometimes they say no foul. It’s not a subject that keeps me awake during the night.”