The Reds are sitting in fourth in the league table and are ten points behind league leaders Manchester City after having played a game more.
The reigning champions are more or less out of the title race and are now fighting to save themselves from dropping out of the top four this season.
Lawrenson believes that being out of the title race could liberate Liverpool and they could start playing their game again without the pressure of trying to win the Premier League.
He urged Klopp to make sure that he fields his best midfield, which means putting Jordan Henderson and Fabinho back in the middle of the park and give a fresh centre-back pairing, with Kabak in it, a chance.
The former Red stressed that Liverpool should again play to their strengths rather than moving players around on the pitch.
Lawrenson said on Off The Ball: “The thing with Liverpool is, and it’s a good thing in many ways as now they can just forget about ambitions of winning the league and start playing again.
“The other day somebody said look that they had to cover for [Virgil] van Dijk and [Joe] Gomez etc, but now the time is basically that he is got to pick his best midfield.
“We know what the front three would generally be and say, that right boys let’s just go out, let’s get back to the good old days of pressing etc and let’s spend most of the match in the opposition’s half and therefore making chances and scoring goals.
“Just give a young kid a run and the new boy they signed from Schalke, [Ozan] Kabak, and what the worst thing that can happen?
“They are not winning games. I don’t know what the record is in the last ten, but it is really poor.
“Go back to making your strength a strength again, take Fabinho and Henderson out and put them in midfield.
“And just start winning football matches.”
Liverpool have lost three league games on the trot at Anfield for the first time since 1963.