Both sides will be playing for second place on the table at Old Trafford on Saturday.
And Karius, who recently solidified his status as the Reds number one shot-stopper, reckons his teammates have enough quality to topple their fierce rivals.
"It's a very big game for us, for the club, for the fans," said Karius. "With the situation being this tight together on the table also, we can't really ask for more.
"Of course they have a good squad and we have respect for them, but we don't fear anyone. We're really confident, looking at ourselves and our own abilities, we know we can beat them.
"We want to go directly into the Champions League again, there's not many places for it and second (place) would be ideal obviously."