The goalkeeper has signed a new five-year deal at Anfield.
The Belgian goalkeeper was handed a new five-year deal at Anfield last week, with him now set to stay at the club until the end of the 2020-21 season.
That new deal has come despite the Belgian once again coming in for criticism again this season, with several unimpressive displays across the campaign.
Lawrenson though, says that they had no other option but to offer their first choice keeper a new deal, as it will help to protect them in future.
“They’ve protected themselves by giving Mignolet a new contract, as it should keep him happy,” he told BBC Radio 5 Live.
“He will know that in the summer if and when they sign another a goalkeeper, it’s him against the new guy.”
“By giving him a new contract, they are protecting themselves as they can ask for more money if someone comes in to take him, if Liverpool actually get another goalkeeper in.”
The problem for Liverpool will be finding a top class goalkeeper in the summer transfer window.
There are several teams who will presumably be looking for a new goalkeeper, but there is hardly a wide selection to choose from.
The front-runner seems to be Stoke City’s Jack Butland, who has stepped into the hole left by Asmir Begovic and proved his Premier League credentials so far this season.
The Potters are unlikely to be willing to sell though, and it may take a big offer from Liverpool to secure the new number one that they need.