Real Madrid are currently five points behind Atletico Madrid in second, but Los Blancos have played two more games than their city rivals.
If Real Madrid want to have any chance of winning La Liga this season, they cannot afford to lose any more games in the league.
Valencia, on the other hand, have had a torrid season, and are currently 12th in the league. Javi Gracia's side have only won once in their last five games, and have had difficulties finding the back of the net.
Niether team can afford to lose on Sunday, which sets up an exciting one.
Real Madrid vs Valencia Head-to-Head
Real Madrid have a slight edge over Valencia based on the recent head-to-head record between the two sides. Los Blancos have won three of their last five league meetings, with Valencia winning two.
Javi Gracia's side, however, demolished Real Madrid 4-1 in the reverse fixture earlier this season.
Real Madrid Form Guide: L-W-L-W-W
Valencia Form Guide: D-L-L-W-D
Real Madrid vs Valencia Team News
Real Madrid will be without seven first-team players for the game on Sunday. Sergio Ramos, Eden Hazard, Rodrygo, Alvaro Odriozola, Federico Valverde and Eder Militao will miss out through injuries.
Marcelo will also miss the game after picking up a calf problem earlier in the week.
However, Zinedine Zidane will be boosted by the return of Toni Kroos from suspension. Meanwhile, Lucas Vaszquez and Dani Carvajal have also been passed fit for the game on Sunday.
Injured: Sergio Ramos, Eden Hazard, Rodrygo, Alvaro Odriozola, Federico Valverde, Eder Militao, Marcelo
Valencia will also be missing a few first-team players for the game on Sunday.
Denis Cheryshev, Jasper Cillessen, Cristiano Piccini, Eliaquim Mangala and Mouctar Diakhaby will miss out due to injury. Meanwhile, Hugo Guillamon is suspended for the game.
Javi Gracia will be sweating over the fitness of star player Carlos Soler after the Spaniard picked up a knock.
Injured: Denis Cheryshev, Jasper Cillessen, Cristiano Piccini, Eliaquim Mangala, Mouctar Diakhaby
Doubtful: Carlos Soler
Suspended: Hugo Guillamon
Real Madrid vs Valencia Predicted XI
Real Madrid Predicted XI (4-3-3): Thibaut Courtois; Ferland Mendy, Nacho Fernandez, Raphael Varane, Lucas Vazquez; Casemiro, Toni Kroos, Luka Modric; Marco Asensio, Vinicius Jr., Karim Benzema
Valencia Predicted XI (4-4-2): Jaume; Jose Gaya, Ferro, Gabriel Paulista, Thierry Correia; Goncalo Guedes, Uros Racic, Carlos Soler, Daniel Wass; Manu Vallejo, Maxi Gomez
Real Madrid vs Valencia Prediction
Real Madrid should win this game without too much trouble. Valencia have not been in good form and will not pose a significant threat to Zinedine Zidane's side.
We predict Real Madrid will win the game comfortably.
Prediction: Real Madrid 3-1 Valencia