The north London side head into the game looking to boost their Premier League title hopes after they returned to winning ways against Bournemouth last weekend.
Arsene Wenger’s men currently find themselves third in the table and five points behind the Foxes heading into Sunday’s showdown at The Emirates.
A win for the Gunners would move them to within two points of top spot heading into the final 12 games of the season.
However, former Liverpool man Lawrenson is expecting to see Leicester earn a point in north London and frustrate the hosts in front of their home fans.
Lawrenson told BBC Sport: “This is going to be very interesting because the spotlight is seriously on Leicester now after their impressive win over Manchester City last weekend.
“Because of the way the Foxes play on the break, I think this will be one of the easiest games they have between now and the end of the season – because Arsenal will come on to them.
“It should be a cracking game but I was surprised to hear Gunners boss Arsene Wenger describe it as “must-win” for his team, because that is inviting people to question their title chances if they only manage a draw.”
Leicester warmed up for Sunday’s game with a stunning 3-1 win at Manchester City last weekend as they were made the favourites to win this season’s Premier League title.
MORE: Latest Man Utd news
MORE: Latest Arsenal news
MORE: The latest football news