As the two clubs establish themselves as the dominant forces in the English game, the rivalry between the pair is very much on the up. The players and manager are always respectful in their comments of the other club, but there is very much a sense that the two groups dislike each other.
This news shows why relations between the clubs have become rather strained.
The Times are reporting that Liverpool were forced to hand over £1million to Manchester City in 2013 after they were accused of 'spying'.
The report alleges that a number of Liverpool employees, who were formerly at Manchester City, accessed City's online scouting network without permission. It is believed that Michael Edwards, the current transfer guru on Merseyside who worked for City as recently as 2011, was amongst those involved.
Manchester City became aware of a breach in their online system after bringing in an outside expert, with the IP addresses involved linked to Liverpool Football Club.
The club even moved up the transfers of Fernandinho and Jesus Navas as a result, fearful that they may be poached by their Premier League rivals.
The £1million payment was made in September of 2013, although Liverpool admitted no wrongdoing.
City became suspicious after Liverpool expressed their interest in Paolo Fernandes, a youth player from Spanish club Zaragoza who would later move to The Etihad. It is believed that their system was accessed by using the login credentials of a club employee.
This report is sure to add to the animosity between supporters of the clubs.