Pep Guardiola’s side are the reigning Premier League champions, but the former Red Devils midfielder believes the history between United and the Merseyside club gives their meetings an extra edge.
Liverpool are currently level on points with City at the summit of the table, but they face a trip to Old Trafford on Sunday in a big test of their title credentials against Ole Gunnar Solskjaer’s resurgent side.
"I think it's the biggest rivalry in English football," Scholes said to Sky Sports.
"In a few years, if Man City carry on the way they are going, that [rivalry] might overtake it a little bit."
United are currently the most successful English side with 20 top flight titles, two more than Liverpool, who are the next most decorated team in the country.
Scholes continued: "You'd expect two Manchester teams to have the biggest rivalry, but I don't think it is, I think it's the Liverpool-Man Utd thing, especially with Liverpool trying to get to United's record of league titles. We don't want them to do that.
"United vs Liverpool is a big, big game and Liverpool are going really well; so are United. They had a bit of a disappointment against PSG, but hopefully they can redeem themselves tonight [against Chelsea]. And hopefully they'll beat Liverpool on Sunday."
