The two Premier League heavyweights have been embroiled in one of the closest title races in years.
City had seemingly been coasting to the title earlier in the year, holding a twelve-point lead over Jurgen Klopp's side at one point.
But the German has overseen a huge resurgance from his side and they now trail the Cityzens by just four points with a game in hand before the final day of the season.
But Merson has downplayed talk of Liverpool shocking the world and Manchester City capitulating as they did in the Champions League against Real Madrid.
He wrote on Sky Sports:
"Liverpool could win 55-0 against Southampton on Tuesday night, it wouldn't make a difference. They have no chance of winning the Premier League title now.
Merson alluded to City's 2-2 draw against West Ham United last time out and how decisive it has been in the title tussle:
"Manchester City's result at West Ham was a massive point, now they have to beat Aston Villa at home on the last day of the season - and you would take that a million times out of a million. All you have to ask for at the end of the title race is for it to be in your hands and you're at home."
"If Man City had lost that game, I could have seen Liverpool putting a lorry load past Southampton. It would have been a five-goal swing had West Ham beaten Man City 2-0 - and Southampton can let in goals for fun. It could have been four then and you would have had a shootout at the end of the season."
And it is City who Merson is sure will lift the title come Sunday, May 22:
"But that point was huge in the end, absolutely huge. For me, Manchester City win the Premier League."
Liverpool's season has been astounding but Manchester City deserve the Premier League title
Jurgen Klopp's side are targeting an unprecedented quadruple, having secured the Carabao Cup and the FA Cup.
They head to Paris on May 28 to face Real Madrid in the final of the Champions League.
It was Manchester City who Madrid managed to shockingly beat in the semi-final stages.
But as for the Premier League, despite the Reds' admirable performances, City have been the overall standout performers for large spades of the season.
They have not looked like hitting a stumbling block throughout the campaign, with Klopp's men having taken their time at the start of the season.