Pep Guardiola admits he has been "bothered" by Jurgen Klopp's claims that Manchester City live in a fantasy land of spending.
Last week, Klopp said Liverpool have less money to spend this summer because they "have bills to pay" and do not live in this "fantasia land where you get whatever you want", like City.
Guardiola has rejected Klopp's assertions, speaking ahead of Sunday's Community Shield meeting between the two title rivals, and insists City have no financial advantage over Liverpool in the transfer market.
"Yeah it bothers me because it is not true that we have spent £200m every transfer market," Guardiola said ahead of Sunday's match at Wembley.
"Also it's Liverpool - 'you'll never walk alone' - it's not a small team.
"Of course I don't like it because it's not true. Last season we spent [net] £17m on just one player.
"Two seasons ago when I spent a lot, it's because I took over the team with 10 or 11 players over the age of 30 - you have to [replace them].
"But we can't spend £200m every season. For example, Liverpool spent over £200m last season, and they can't do it this season. For us it is the same.
"We bought one player this season and then Angelino with a buy-back clause. Today the clubs cannot spend every season a lot of money.
"What happens at Real Madrid and Barcelona I do not know because I am not there."
Sane speculation
Bayern Munich have publicly pursued Leroy Sane throughout the summer after losing Franck Ribery and Arjen Robben on the flanks at the end of last season.
On Thursday, they were forced to deny that a deal had been struck between the two clubs in an official statement and Guardiola has backed that up, saying there has been no change in the situation.
"We want Sane to stay here, that's why we offered a contract. We were quite close a few months ago, but now it is a little bit different," he added.
"I want the players who want to stay, because it is impossible for me as a manager and for the club to convince a player of what we want to do when his head is away from here.
"The player did not tell me anything. If a player knocks on my door and tells me he wants to leave then OK we are going to talk with the clubs."