The Liverpool legend, who now works as a pundit for BBC Sport, believes that City will get the better of Leicester 2-0 away from home at the King Power Stadium in the Premier League on Saturday evening.
Lawrenson told BBC Sport: “This should be an excellent game between two teams who are extremely good at what they do.
“Leicester will carry a threat on the break even if they don’t see much of the ball - Jamie Vardy’s presence ensures that.
“It will be close, but I think Manchester City’s quality on the ball will see them through - again.”
Leicester are third in the Premier League table at the moment with 56 points from 29 matches.
Brendan Rodgers’s side will head into the match against City on the back of a 3-1 victory over Manchester United at the King Power Stadium in the quarter-finals of the FA Cup.
Meanwhile, City currently find themselves at the top of the Premier League table with 71 points from 30 matches, as many as 14 points clear of second-placed Manchester United, who have played 29 games.
Pep Guardiola’s side will head into the match against Leicester on the back of a 2-0 win against Everton away from home in the quarter-finals of the FA Cup.