Lawrenson, who won five League Championships during a seven-year spell at Anfield between 1981-88, reckons City are now showing vulnerabilities.
He told BBC Sport: “I think Liverpool will win the league this year and they have shown us why in the past few weeks.
“If anyone gives them a problem they just seem to know how to solve it.
“I just don't think City are at the same high level as last season.
“Part of that is down to injuries but, even with largely the same players, there does not quite seem to be the same feel about the team.
“City did a good job of stopping Liverpool playing the last time they came to Anfield, a 0-0 draw in October 2018, and I cannot see them coming out and playing really open this time either.
“Liverpool go nine points clear if they win, which is a lot. That is what I think will happen too."