The Toffees were seen off 2-0 by City at the Ethiad Stadium last weekend, allowing fierce local rivals Liverpool to leapfrog them in the Premier League standings after they beat Wolves.
But 20-year-old midfielder Rodwell was encouraged by Everton's display against Roberto Mancini's star-studded side and is adamant they can bounce back when they entertain the Reds at Goodison Park.
"We have made a decent start and got some good victories under our belts," Rodwell told the Daily Mirror.
"So we won't get too down about City and will focus now on Liverpool.
"We had a Carling Cup match the previous week, which went to extra time, so that was a hard workout.
"Man City was again another hard workout - but we will have a rest, get into a good week's training and bounce back for the derby.
"City have bought some very good players but we feel we have a strong squad as well.
"We tried to match them on the day, but it wasn't to be. Now we move on to Liverpool."
Source: Team Talk
Source: Team Talk