The Citizens find themselves all but out of the Premier League title race after succumbing to a 2-1 defeat to Crystal Palace on Monday night. They now sit in fourth place with Arsenal and the Red Devils now lying ahead of them.
Manuel Pellegrini looks set to be sacked in the summer and fans have been disappointed with what will now almost definitely be a season with silverware. However, Kompany believes a win at the Theatre of Dreams will help to repair most of the damage.
He told the club's official website: "It's a good moment to go into a derby.
"It's the perfect place for us to go and try to rectify what we've had."
He added: "A derby is a derby. It doesn't matter what place you are in the league, it's a derby."
While Manchester City a relatively safe from Liverpool and Tottenham below them, there are big repercussions if they were to finish fourth. It would mean a tough two-legged qualifying fixture to get into the Champions League and the uncertainty could damage summer transfer plans.
A loss against Manchester United could leave them four points away from third place if Arsenal win their next game against Burnley. Arsenal are on a winning streak of seven games while United have won all of their last five.
Kompany is under no illusions. He knows this season is finished. They will concede their title to Chelsea but the City skipper knows how important it is to finish the current campaign on a high note.
My only concern is we get back to our best form," he said.
"I think it's our general form that we have to improve. I've learnt from the past seasons as well that finishing a season strongly can have an impact on your next season as well."
Louis van Gaal will see the Manchester derby as the perfect chance to eradicate any doubt United fans had in his ability to manage the club. And the United players have plenty to make for after two seasons of woe. They will want to win this just as much as City.
Who will win the Manchester derby and what will the score be? Give us your predictions in the comment box below!