Pep Guardiola’s side, sitting top of the table, locked horns with second placed Liverpool at the Etihad at lunchtime on Saturday in the Premier League.
The clash finished in a 1-1 draw as Liverpool came from behind to claim a share of the spoils and underline their ability to challenge Manchester City for the title.
Walker though insists that Manchester City have faced far harder games from Liverpool sides in previous years and believes the Reds are still working to gel as a team.
The Manchester City defender stressed that now is a critical period in the season, with a host of points up for grabs.
“Am I going to lie to you now and say it’s the best Liverpool team I’ve played? No, I don’t think so”, Walker said on BBC Radio 5 live’s Sports Report.
“We’ve had much harder games against Liverpool over the number of years than what we’ve faced today.
“Listen, they are finding their rhythm, they are finding their groove, they’ve had a couple of new additions just as we have.
“But this is the important part of the season, the Christmas period where there are games every three days, this is where you need to get the points on the board and hopefully turn the season around and start shaping a little bit of form.”
While Manchester City remain favourites to retain the Premier League title this season, Liverpool have shown signs of once again being able to push the Cityzens.