The 21-year-old spent the majority of last season playing in a three-back or at right back despite being signed as a midfielder from Bayer Leverkusen.
“I’ve always thought defensive midfield is Can’s best position,” Lawrenson told the Liverpool Echo.
“It’s definitely better than having him at right-back or, despite some success, on the right side of a back three.
“I’d actually look to have Can playing even when Henderson is available. With the German deep, it allows both the skipper and James Milber to bomb on, with the pair much better at running off the ball.”
Can has yet to start for the Reds this season but has came off the bench in both Premier League games this season.
The 21-year-old joined Liverpool as a central midfielder from Bayer Leverkusen last summer but has spent most of his time at the Premier League giants as a defender.
Can played in Brendan Rodgers back-three last season and as a right-back. Rodgers is however, expected to play Can as a midfielder this season.
Liverpool take on Arsenal next at the Emirates stadium on Monday 24 August.