Former Liverpool midfielder Dietmar Hamann believes winning the Carling Cup would represent a major step forward for the club and put the Reds "back on the map".
Kenny Dalglish's team takes a 1-0 lead into Wednesday's semi-final second leg at Anfield against Manchester City, another of the ex-Germany international's sides.
The Merseysiders have not won a trophy since their FA Cup final victory of 2006 and a draw in midweek would secure their first appearance at Wembley for 16 years.
Hamann knows how significant winning the league cup can be as he was part of the side which beat Birmingham in Cardiff in 2001 on the way to a famous treble as they also lifted the UEFA Cup and FA Cup.
"I think it is very important for them because the club has not won a trophy for six years now and we all know what an impact it can have," the German, speaking about the Carling Cup at an event at Football League headquarters, said.
"In 2001 we got off on our way to a memorable season with the league cup and I'm not sure whether we would have won the UEFA Cup or FA Cup finals had we not beaten Birmingham on penalties.
"To go to the final and win would be a major step forward for Liverpool.
"It puts them back on the map. We all know the longer you don't win the harder it gets the next year.
"A victory is very important because if breeds confidence and belief and faith in the other players and I think it gives them a better chance of finishing in the top four.
"They won't win the league this year because there are stronger teams but in cup competitions you only have to win six or seven games so that is why Dalglish has played strong sides.
"But other managers have identified that as well because if you look at the winners of the Carling Cup in the last few years apart from Birmingham they are all big teams.
"It is all about winning trophies and the Carling Cup was seen as the fourth cup a few seasons ago but has grown in importance the last few years."
A 3-1 defeat at Bolton at the weekend was the worst possible preparation for Dalglish's side but they will have drawn some comfort from seeing City let slip a two-goal lead against Tottenham, even if they did snatch a late 3-2 win.
Roberto Mancini's side was poor in the first leg but Hamann does not expect to see a repeat performance and believes Liverpool cannot afford to sit back and defend their lead.
"They (Liverpool) have had six years to get a monkey off their back and they have a golden opportunity this year," added Hamann.
"They have put themselves in a great position with a 1-0 win in the first leg and they have every chance.
"It is a big game for Liverpool on Wednesday because I am not sure whether they can shut them (City) out again.
"If Liverpool want to go through they have to score and this is where the problem lies because they find goals hard to come by at the moment.
"It will be a tight and interesting game but Liverpool is probably just marginal favourites because they won the first leg.
"And if they were to get to the final you would fancy them against a Championship side (Crystal Palace and Cardiff contest the other semi-final).
"It would do their confidence the world of good because it makes them believe more and if you have come out of a final successful it gives everyone an extra boost."
He accepts the Carling Cup may not be top of Mancini's priorities but expects to see City come out fighting on Wednesday.
"The league and the Carling Cup are their best two chances of winning trophies," he said.
"Last season they tasted success (winning the FA Cup) and once you have won one you want to win another and they will do everything they can to put another trophy in the cabinet.
"They are missing the Toures (Yaya and Kolo) and Vincent Kompany but I expect a strong team and performance.
"I was disappointed with them in the first leg but I don't think we will see as disappointing a performance as that again."
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