The midfielder says Nathaniel Clyne has been a 'shrewd' signing from Southampton.
City host Liverpool at the Etihad on Saturday afternoon, with the game being Sterling’s first against his former club since his big-money move in the summer.
He has made an impressive start to life with Manuel Pellegrini’s side, with them currently sitting joint-top of the Premier League table.
He will be keen to show his old side what they are missing when he comes up against them in Manchester, but Lallana has backed Nathaniel Clyne to counter the threat he poses.
“Raheem will be a massive threat,” he told the Liverpool Echo.
“We all know what he’s capable of with that great pace but I have got great confidence in Clyney. He’s so solid – not many people beat Clyney.”
Speaking of Clyne, Lallana says that his capture from Southampton in the summer has proved to be quite a coup for Liverpool.
The full-back was secured for a fairly sizeable fee, around £12.5 million according to the Mirror, but has fast established himself in the side as the first choice right-back to start repaying that investment.
He is also vying for an England starting berth ahead of Euro 2016 next summer, and has been a favoured selection for Roy Hodgson of late
And Lallana has praised him for performing at a high level for club and country.
“He has settled in so quickly. What he does almost goes unnoticed,” he added.
“He’s been a very shrewd signing for Liverpool. I knew from Southampton what he was capable of and he’s performing at a really high level for both Liverpool and England.”