It is set to be a pivotal encounter and could set the tone so early in the season.
Both teams will go into the match which kicks off at 12pm at Ibrox after crucial Europa League qualifying ties on Thursday, adding an extra spice to proceedings.
Rangers go into the match as favourites, despite narrow wins over Kilmarnock and St Mirren in their first three league games, while the visitors have swept aside St Johnstone, Motherwell and Heart of Midlothian.
Celtic, however, remain odds-on favourites to retain the Scottish Premiership and make it nine-in-a-row in their quest to become the first team in Scottish football history to win ten-in-a-row.
Yet, according to the bookies, it is the closest the two teams have been since Rangers' return to the top tier.
Ahead of the new campaign, league sponsors Ladbrokes were forced to shorten the Ibrox side's odds to 2/1 after 91.75 per cent of stakes placed on the winner of the 2019/20 title were in favour of Steven Gerrard's men.
Now, after both sides opened with three wins from three, Rangers are down to 9/5 with Celtic at 4/11.
Even last season, when Rangers won the final Old Firm clash of 2018 to go level on points with their rivals they were still at 3/1 to succeed.
The Parkhead side have shown that they are still very much the team to beat domestically but a win for the home side at Ibrox on Sunday could see those odds slashed further.