The Reds host Claudio Ranieri’s men on Merseyside looking to return to winning ways after a disappointing run of results.
Liverpool slumped to a 3-0 loss to Watford last weekend after a draw against West Bromwich Albion followed their defeat by Newcastle United.
Jurgen Klopp has been tasked with guiding Liverpool back into the top four this season and his side are currently five points adrift of fourth-placed Tottenham heading into the hectic festive period.
And former Liverpool man Lawrenson is tipping the Reds to secure the three points against the high-flying Foxes on Saturday afternoon.
Lawrenson told BBC Sport: “I saw Leicester’s 3-2 win at Everton last weekend when Riyad Mahrez and Jamie Vardy turned the game in their favour.
“What we haven’t spoken about is how organised the team is behind those two. Leicester have got width, defenders who defend, a top goalkeeper and they are all prepared to work hard to create chances for Mahrez and Vardy. But, for some reason, I fancy Liverpool.
“Liverpool will probably have to go back to basics – getting tackles in and squeezing the opposition. They didn’t do that in the 3-0 defeat at Watford.
“Liverpool’s problem is that when Roberto Firmino, Philippe Coutinho and Adam Lallana play without a centre-forward, they have too many touches and it allows the opposition to get back into position.
“But because Liverpool are the underdogs – and because there will be a great Boxing Day atmosphere at Anfield – I’m going for a home win.”
Former Dortmund boss Klopp, who was appointed as Brendan Rodgers’ successor in October, has overseen impressive away victories at Chelsea and Manchester City since taking over at Anfield.
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