Raheem Sterling, Phil Foden and Jack Grealish all start for the visitors, with Kevin De Bruyne and Bernardo Silva behind them in what looks an incredibly creative team.
Ruben Dias and Aymeric Laporte are favoured at the back, meaning John Stones has to settle for a place on the bench.
Algeria suffered a shock group-stage exit at the AFCON but Mahrez has been afforded a rest period by Pep Guardiola and will not feature at the Etihad on Saturday.
"Now he has a holiday for a week," said Guardiola on Friday.
"After the AFCON, he has permission for one week off and will come back with the team next week."
City are also without Oleksandr Zinchenko, but Nathan Ake is fit enough for the bench.
Man City XI: Ederson, Walker, Dias, Laporte, Cancelo, Rodri, De Bruyne, Bernardo, Sterling, Foden, Grealish
Subs: Carson, Slicker, Stones, Ake, Gundogan, Jesus, Fernandinho, McAtee, Wilson-Esbrand