Eric Tinkler's side have won their last six DStv Premiership games to shoot up to second place on the standings with 25 points from 13 games.
Their only defeat was a narrow 1-0 loss to Golden Arrows in the first round of the Carling Knockout Cup but they have since vanquished that ghost by overcoming Arrows 1-0 in the league last time out.
Stellenbosch, meanwhile, are enjoying a productive season of their own, in fourth place on the league standings with 20 points.
And they coupled their top-flight form with a storming run to the Carling Knockout final, where they will face Sead Ramovic's TS Galaxy.
Steve Barker's side thrashed Richards Bay 3-0 in their semi-final, after a 3-0 rout of Cape Town Spurs in the Premiership a week prior.
They are unbeaten in their last eight games in all competitions and in eight past encounters with the Citizen, Stellies have won five, lost two and drawn one.
Ahead of the encounter, Tinkler said in the Sowetan: "We've got a Cape derby against Stellenbosch coming up on Friday. Our record against them hasn't been that brilliant over the past couple of seasons.
"Obviously we are looking to change that.
"We are coming off the back of some very, very good wins and good performances but they themselves have their tails up. They managed to get into the Carling Knockout final. Derbies are never easy but we head into this game with belief and confidence that we can win."
Barker added on his club's website: "There have always been some tight and competitive matches against our neighbours and both teams have been in good form lately. Obviously their league form of six wins from six is an exceptional return, so we're looking forward to it.
"We're also looking forward to being back at our home ground. We haven't played here at the Danie Craven Stadium for a while so that is also something to look forward to.
"Bragging rights are important and factors a lot into it. We recently played Cape Town Spurs and we were fortunately able to win that one, and now our aim is [to do the same against] Cape Town City.
"Derbies bring that little bit of an edge and there will be a big crowd out for both clubs, but we want to give our supporters that joy and happiness and the bragging rights that they deserve."