Mahrez was forced off during last weekend’s final match of the US pre-season tour against Bayern Munich with an ankle knock.
However, at Friday’s press conference to preview the game against the FA Cup winners, Pep revealed that the attacking midfielder, who moved to the Club from Leicester last month, had trained and was fit for selection.
The City manager also revealed that he would have his full compliment of players available again after this weekend’s game.
“Kevin and Sterling are not here but they will be back after the game on Sunday,” Pep confirmed.
“From Monday we will be back all together and think about what we have to do to keep last season’s level.”
The City manager also revealed how much he was looking forward to locking horns with new Chelsea manager Maurizio Sarri who has taken charge at Stamford Bridge this summer from Antonio Conte after leaving Napoli.
“I am happy that he is here in the Premier League,” Pep added. “I will learn a lot to see his team every weekend. I saw three games - he gets it, the team in a short time plays like he wants.
“I think it will be a good game, always Chelsea is a big rival. Antonio was, Maurizio will be too. The style of play will be perfect for English football.”