Danny Mills believes Everton will be full of confidence that they can beat Liverpool in the Merseyside Derby after highlighting Leeds United as proof of what can be done.

Speaking exclusively to Football Insider correspondent Dylan Childs, the former Manchester City and England full-back claimed the Champions have lost their “invincibility factor” after their 7-2 defeat to Aston Villa.

They travel to Goodison Park on Saturday for the first Merseyside derby of the season with the Toffees in fine form.

Aston Villa scoreboard

Carlo Ancelotti’s side currently sit top of the Premier League after winning all of four of their opening games.

Liverpool are in fifth position after suffering their first defeat of the season to Aston Villa on the 4th of October.

Asked by Football Insider whether he thinks this will be the first time in a while that Liverpool will be fearing their city rivals, Mills said: “I think they’ll be looking at Everton and going ‘Ooh, hang on a minute, these are doing pretty well at the minute.

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“They’ve got a top-class manager in Ancelotti with big experience.

“The players are doing well and some of those players have done well internationally too.

“They’ll be full of confidence and they’ll be thinking ‘right, ok, we can get at Liverpool.’

“Look at what Leeds did to them, look at what Aston Villa did to them.

“You lose that invincibility factor. When people see a chink at the armour, they suddenly think ‘we can get something from this game’ and it changes everything.

“The belief that Everton will have at the moment is absolutely outstanding.”

Everton last beat Liverpool in October 2010 when goals from Tim Cahill and Mikel Arteta fired them to a 2-0 victory.

The Reds are now unbeaten in 22 games against the Toffees.

In other news, Football Insider can exclusively REVEAL Liverpool are in talks with a young defender after having had a bid accepted.