The 17-year-old makes his Premier League debut against the champions, who call upon their mercurial Italian to partner Carlos Tevez and revert to three at the back
The 17-year-old, who has impressed in his outings in the Europa League, will form a three-pronged Reds attack alongside Luis Suarez and summer signing Fabio Borini.
Manchester City, meanwhile, revert to the back three system which helped them vanquish Chelsea in the Community Shield, with Pablo Zabaleta slotting in alongside Kolo Toure and Vincent Kompany in defence.
Up front, Mario Balotelli comes in to replace Sergio Aguero, who injured his knee in the opening day victory over Southampton.
Liverpool starting XI (4-3-3): Reina; Kelly, Coates, Skrtel, Johnson; Lucas, Allen, Gerrard; Sterling, Borini, Suarez
Subs: Jones, Enrique, Carroll, Henderson, Carragher, Shelvey, Downing.
Manchester City starting XI (5-3-2): Hart; Milner, Kolo, Kompany (C), Zabaleta, Kolarov; De Jong, Yaya, Nasri; Balotelli, Tevez
Subs: Pantilimon, Lescott, Savic, Silva, Rodwell, Razak, Dzeko.