Jordan Henderson makes way for the midfielder on loan from Real Madrid, while Alex Oxlade-Chamberlain gets the nod ahead of Theo Walcott and Gervinho for the north London side
The midfielder joined on a season-long loan deal from Real Madrid at the end of August, with the north London side also heavily linked following the departure of Alex Song to Barcelona.
Sahin replaces Jordan Henderson in the centre of midfield in six changes from the team who scraped past Hearts in the Europa League.
For Arsenal, third-choice goalkeeper Vito Mannone continues to deputise for the injured pair of Wojciech Szczesny and Lukasz Fabianski.
Elsewhere, Theo Walcott - who has been the subject of much speculation surrounding his future after reportedly rejecting Arsenal's latest contract offer - starts on the bench as youngster Alex Oxlade Chamberlain gets the nod ahead of the England international and Gervinho.
Liverpool starting XI: Reina; Johnson, Skrtel, Agger, Enrique; Allen, Sahin, Gerrard; Sterling, Borini, Suarez.
Subs: Jones, Carragher, Shelvey, Downing, Henderson, Kelly, Coates.
Arsenal starting XI: Mannone; Jenkinson, Mertesacker, Vermaelen, Gibbs; Cazorla, Arteta, Diaby; Oxlade-Chamberlain, Podolski; Giroud.
Subs: Koscielny; Martinez, Santos, Ramsey, Coquelin, Gervinho, Walcott.