The youngster had an impressive first-half performance against Scottish outfit Heart of Midlothian in the Europa League midweek clash, and has made enough of an impression on Reds boss Brendan Rodgers to be named in the starting XI. The youngster will form an attacking trio with Luis Suarez and Fabio Borini.
Manchester City, meanwhile, have gone with Mario Balotelli to start in place of the injured Sergio Aguero, partnering Carlos Tevez up front. Edin Dzeko, Jack Rodwell, and David Silva are all relegated to the bench.
Liverpool (4-3-3): Pepe Reina, Martin Kelly, Glen Johnson, Sebastian Coates, Martin Skrtel, Lucas Leiva, Joe Allen, Steven Gerrard, Fabio Borini, Luis Suarez, Raheem Sterling. Bench: Brad Jones, Jose Enrique, Andy Carroll, Jordan Henderson, Jamie Carragher, Jonjo Shelvey, Stewart Downing.
Manchester City (4-3-3): Joe Hart, Kolo Toure, Vincent Kompany, Pablo Zabaleta, James Milner, Aleksander Kolarov, Nigel De Jong, Yaya Toure, Samir Nasri, Mario Balotelli, Carlos Tevez. Bench: Costel Pantilimon, Joleon Lescott, Stefan Savic, David Silva, Jack Rodwell, Razak, Edin Dzeko