City won their last five games in all competitions scoring 18 goals in the process while conceding just one goal.
The Citizens are unbeaten and they top of the Premier League after 11 games, two points ahead of Liverpool and Chelsea.
Furthermore, United has had a stop-start season so far but defeated Juventus in their Champions League clash on Wednesday.
Under Pep Guardiola, City has lost only once at the Etihad, a 3-2 defeat to United last season.
Matic and his teammates are aware of City’s quality and expect a difficult game at the Etihad.
“I expect a very difficult game,” he told the club’s official website.
“They are a very good side, they play good football, they score a lot of goals in every game, but we also have our qualities which we have to use.
“We have to stop them in their attacks, there is a way to do it and the manager knows that.
“We will prepare for the game. I expect a hard game but, in a derby, everything is possible, and we will be ready for that.”
United have won three of their last four games in the league, including a late winner at Bournemouth last week.
Matic feels the confidence has been boosted by the good run.
“I think that we believe more that we’re a good team, we have also improved and mentally we are stronger.
“I think in the last four league games we have three wins and a draw. This gives you more confidence, but we deserve that and will try to continue in this way.”
“I remember that at half-time we felt that it was very hard [for us] but the manager came inside, sat with us and said he was believing that we can turn the result around.
“He said that in the first 20 minutes, before they scored the first goal, that we were the better side, he asked for us to continue to play like that – the first 20 minutes.
“He said if we did that, we had a chance to score goals and get some points – that’s exactly what we did.
“Paul scored two goals, Chris Smalling scored too, and it was a great comeback. I think in that moment, our supporters felt very proud. I was also very happy to make them happy to not allow Man City to celebrate winning the Premier League title in front of us.”