The Premier League's top two meet for an early title showdown at the Etihad Stadium, a venue the Reds have not won at in the league since 2015.
Pep Guardiola's City have injury worries going into the game, namely regarding Erling Haaland, John Stones, Mateo Kovacic and the long-term absentee Kevin De Bruyne.
But Carragher fears Liverpool will be vulnerable without Andrew Robertson and a defensive midfielder in the mould of Fabinho, who surprisingly left in the summer. The ex-defender also sees Jeremy Doku as a key threat to Trent Alexander-Arnold, who has spent the last week playing in midfield for England.
"It will be tough - the best Liverpool will get is a draw," he told Sky Bet's Stick to Football podcast. "Liverpool’s record there is poor.
"Liverpool have the best goalkeeper in the world and they’ll definitely need him. Liverpool’s defensive record has been really good this season and Virgil van Dijk has been not too far away from his best.
"But there are still chinks in the armour with Robertson out, Trent in that midfield [role] going back to full-back, and I’m thinking of Doku coming up against him.
"Also, Liverpool defensively in midfield still haven’t really got that top class number six, so it will be difficult. The best they’ll get is a draw."
Conversely, fellow pundit Ian Wright has argued why Liverpool are his favourites to down City.
"I’m going to go with Liverpool," he stated.
"Liverpool, defensively, should have conceded more goals by now but the keeper is amazing and their midfield with [Mohamed] Salah are in unbelievable form – this will be a good one for Liverpool."