Former boss Gerard Houllier believes Liverpool will finish in the top four this season and challenge for the title next year.
The Frenchman, who managed Liverpool between 1998 and 2004, feels this year is a season of transition under boss Kenny Dalglish, who returned to the club in January to replace Roy Hodgson.
The Scot invested heavily in the club over the summer in an attempt to rebuild the side, with the likes of Charlie Adam, Stewart Downing and Jordan Henderson signing on at Anfield.
Houllier, who had a spell in charge of Aston Villa last campaign, is impressed from what he has seen so far from the new-look Reds, who are currently seventh in the table, and feels they will soon be capable of challenging for the title.
He told the Sunday Mirror: "Kenny is doing a good job. He is trying to change the team and this is a transitional season for them.
"By that, I don't mean they won't reach the top four - they could do that. When Steven Gerrard comes back, they will be even better, they will get back their leader and an exceptional player. But, in any case, they are making good progress.
"I don't believe they will be able to challenge for the title - not this season. But they have made the right choices regarding players, so, as they gel, then next season should be better.
"When a club has a culture, a history, and a philosophy of winning silverware, which is what everybody aims for. There is no question of being happy with anything else.
"It's a good pressure because players arrive at the club knowing they are expected to perform and to win."
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