Alan Shearer believes boss Kenny Dalglish remains "the right man to take Liverpool forward" despite the Reds' poor form in the Premier League.
The Reds have won the Carling Cup and are in the FA Cup semi-finals but have won only two league games in 2012.
Shearer, who won the title under Dalglish at Blackburn in 1995, said: "That is disappointing, but you have to be careful in criticizing Kenny.
"Liverpool entered three competitions this season and they could win two."
Dalglish takes his side to his old club Newcastle on Sunday, having lost four out of five league games since they won the Carling Cup on 26 February, and seven out of 11 since the turn of the year.
Despite their Wembley success and a resounding win in the Merseyside derby on 13 March, Dalglish has come under increased criticism from Reds supporters as their hopes of a return to the Champions League have disappeared.
With eight games to go, Liverpool lie seventh, 31 points behind leaders Manchester United and 13 behind fourth-placed Tottenham.
But Shearer, whom Dalglish signed for Blackburn for £3.3m in 1992 and also managed at Newcastle from 1997 to 1998, feels the 61-year-old's job is safe and says the Anfield club's fans should enjoy their side's successes in the knockout competitions.
Shearer told BBC Sport: "There is a big gap there and Liverpool are not going to get in the top four this season but it still could turn out to be a good one for them.
"It's there for everyone to see that their league form has not been good enough, but if they go home with two cups then that would certainly be progress, and surely that is what it is all about for Liverpool at the moment?
"If you were to ask an Arsenal fan which they would rather have, the FA Cup and the Carling Cup in the trophy cabinet or a finish in the top four, then that is a tough question for them.
"Of course Liverpool want both. Next season will be all about winning trophies and getting in the top four, because that's the size of club they are."
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