Leighton Baines was forced off in the final minutes of the 2-0 defeat to Southampton at the weekend after suffering a knock to his knee and calf.
But the club have confirmed he has responded well to treatment and is likely to be part of manager Roberto Martinez's plans against City.
"Leighton Baines is set to be fit for this weekend's game against Manchester City," said a statement on the club's official website.
"The England international was assessed over the weekend, but has reacted well to the problem, meaning he should be fit for Saturday's crunch Goodison clash."
Victory for Everton would keep alive their hopes of catching Arsenal to secure fourth and with it the final Champions League qualification place, while a City win would further boost their title chances.
Watch Everton v Manchester City on Sky Sports 1 and Sky Sports 3D on Saturday. Coverage begins at 5pm.