The Reds were pitted against the Premier League leaders for their Champions League quarter-final after a 5-0 aggregate win against FC Porto in the previous round.
Liverpool FC surged into a 3-0 lead in the first leg thanks to goals from Mohamed Salah, Alex Oxlade-Chamberlain and Roberto Firmino at Anfield earlier this month.
Manchester City looked to target Alexander-Arnold during the first leg but the 19-year-old managed to tame Germany international Leroy Sane in front of The Kop.
Pep Guardiola pitted Sane against Alexander-Arnold in the second leg but the England Under-21 international acquitted himself well in the 2-1 win at The Etihad.
Alexander-Arnold has been caught out on a number of occasions this term, notably in a 2-1 loss to Manchester United and 2-1 win at Crystal Palace.
However, former Liverpool defender Lawrenson has been impressed with Alexander-Arnold’s mature performances in the Champions League this term.
“The young right-back did great,” Lawrenson told Irish radio station Newstalk. “The great thing is if he makes a mistake he can recover in terms of his space.”
Liverpool FC are in third place in the Premier League table and are on course to finish in the top four for the second successive seasons.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news