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The four-time Olympic champion returned to the velodrome last year in a bid to qualify for his fifth Olympics.
"It's an evidence-based selection he's involved in," Sutton told BBC Sport.
"Brad has to go out and produce in London which will determine whether he makes the road to Rio or not."
Wiggins, 35, is set to team up with Mark Cavendish in the non-Olympic madison at the Worlds, which run from 2-6 March and will be broadcast live on the BBC.
Wiggins, who has won seven Olympic medals on the track and road, will also race in the four-man team pursuit, which is his target for Rio.
As for Cavendish, who partnered Wiggins to win the madison at the 2008 World Championships, the 30-year-old aims to represent Britain in the six-event omnium at this summer's Olympics.
"As things stand right now, he'll be on the start line in London," Sutton said of Wiggins.
"There are six guys in the mix at this moment in time. Brad's one of the strong guys in that group."
Sutton believes that the 2012 Tour de France winner can rise to the occasion in front of a home crowd.
"Like everybody else, Brad is definitely under pressure, but Brad's the ultimate professional," he said.
"Brad would de-select himself if he didn't think he could do the job, but I'm quite sure he can."
Sutton added that selection for Rio was far from settled.
"There's a foot in the door for anybody who goes to London," he said.
Sir Bradley Wiggins "must produce" at March's World Championships in London if he is to make the track team for the Rio Olympics, says British Cycling's technical director Shane Sutton.