The Portuguese centre half has been sidelined for a month with a hamstring injury while Palmer has also been out with a foot issue.
And, addressing the media at Friday’s pre-match press conference, the boss revealed that the duo will again be missing on Sunday.
But, with Kyle Walker available again after missing Tuesday’s Champions League quarter-final first leg win over Atletico Madrid through suspension, Guardiola said he otherwise had a full squad to select from.
With City just a point ahead of the Anfield side and only eight games remaining this season, the City boss acknowledged that Sunday’s match was a hugely important fixture.
Though Guardiola said it was too soon to determine who would go on to win the title, he said it was a game he was eagerly looking forward to.
“Everyone is fit. Ruben, no and not Cole Palmer,” the City manager confirmed.
“(Will the winner win the Premier League?) I don’t know.
“It will be a massive important three points but there still remains seven games, 21 points and a lot of things involving the Champions League and FA Cup.
“We know how important it is.
“(Do I enjoy these games)? Absolutely.
“In the Premier League in the time I have been here, except the first season, from then on the last five years they have been an incredible marvellous contender.
“It is always a good game. I have said many times how I admire what they do. At the same time, I enjoy this challenge a lot.
“I am very pleased to face that on Sunday and next week. Jurgen (Klopp) is as big a rival as I have had in my career. I think what both teams propose is good for football.
“Both teams try to be ourselves.
“I think both teams are good and we will try to discover the weak points they have and exploit it. At the same time, at home with our people, be ourselves.
“We play already many times, not just in the Premier League and always an interesting game.
“Always very tight and good games. It will be an incredible test and we are ready for the challenge.”
City host Liverpool at 16:30 (UK) on Sunday 10 April and we’ll have comprehensive coverage here on mancity.com and the official app.
Live updates begin in our Matchday Centre two hours before kick-off, whilst our Matchday Live show, with guests Shaun Goater and David James, starts one hour before we get under way at the Etihad Stadium.
During the game you can listen to live audio commentary from Alistair Mann and Andy Morrison, whilst a match report and post-match reaction from players and Pep Guardiola will be available shortly after the final whistle.
You can watch highlights for free from 20:15 on Sunday and CITY+ subscribers can also enjoy a full-match replay from midnight after the game.