Liverpool, who could potentially seal their first English league crown in 30 years against City next Thursday, are awaiting a decision from a safety advisory group on the venue.
"Honestly, I would prefer it is at Manchester, otherwise it would be really difficult to organise it," Klopp told reporters ahead of Wednesday's league clash against Crystal Palace.
Authorities could shift the game to a neutral venue due to concerns Liverpool fans might congregate outside the stadium to celebrate their success.
"I don't know how it would be but it would not be in Liverpool so it would mean we both have to go somewhere where we both need a hotel. That is the only issue," Klopp added.
"Apart from that we play where they send us to but I would prefer it in Manchester ... I'll wait until the final information is confirmed whether it is Manchester or not. It would be a challenge for both clubs."
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