The former midfielder fancies Manuel Pellegrini's side to progress to the semi-finals of the Champions League.
The two sides meet in the second leg of the Champions League quarter-final tie on Tuesday with the game finely balanced.
Following the first game in France last week the tie is currently deadlocked at 2-2, although City’s two away goals make them slight favourites.
A 1-1 draw would be enough to see them go through, and Merson has predicted that is what will happen, adding that a favourable draw could see them win the competition.
“I fancy them [City] to go through in this game,” he told Soccer Saturday.
“I think they’ll score, I know PSG will probably score but I’m favouring a 1-1 here and they go through.
“If Real Madrid don’t turn it around and you get Wolfsburg in the semi final, who knows? It all comes down to the draw.”
If City are to progress, much is likely to rest on if they can name Vincent Kompany in their defence.
The Belgian has been missing since picking up an injury in the last round against Dynamo Kiev and has been sorely missed as the likes of Martin Demichelis and Eliaquim Mangala struggle to impress.
With Nicholas Otamendi also out injured, the skipper's return would provide a serious boost as Manuel Pellegrini seeks to exit the club on a high.