The Reds head into the game looking to become the first team to beat the Citizens this season after their incredible start to the new campaign in the top flight.
Manchester City have only dropped four points in total this season so far and are flying high at the top of the Premier League table after a brilliant start to Pep Guardiola’s second campaign in charge.
Liverpool FC, meanwhile, are down in fourth place as they look to try and secure Champions League qualification for the second season running under Jurgen Klopp.
The stage is set for a thrilling encounter between two attacking teams at Anfield on Sunday, but Lawrenson is backing the game to end all square.
Speaking to BBC Sport, Lawrenson said: “Manchester City have just been absolutely brilliant but this will be a tough test for them. Going to any of the top four away from home is hard.
“They have already won at Manchester United and Chelsea but I am going for a draw for Pep Guardiola’s side this time. Guardiola will not change his approach to the game – City will play the same way and go on the attack.
“It will be interesting to see what the atmosphere is like and what difference that makes to both teams.
“I know what it is like at Anfield for a game like this where probably not many of the home fans are expecting to win. There is different feel to the place then – a bit like a colosseum atmosphere – which might be a bit different for City.
“Whatever happens, I don’t think it will stop City’s march towards the title. They are going for four trophies this season, and I think they will end up winning three of them.”
The Champions League is the only one they have only got a 50-50 chance of winning. The way they are going in the league, where they just keep on winning, they can afford to go for the domestic cup competitions too.
Liverpool FC finished in fourth place in the Premier League table last season in what was Klopp’s first full campaign in charge.
The Reds have already been busy in the January transfer window after locking up a deal to sign Virgil van Dijk from Southampton and agreeing to sell Philippe Coutinho to Barcelona.
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