Kevin Keegan has told BBC Radio 5 Live that he believes Liverpool have a realistic shot of winning the Champions League this season.
After Liverpool ended Manchester City's unbeaten run in the Premier League on Sunday, Keegan considers Jurgen Klopp's side to be genuine contenders for the European Cup.
Liverpool, who are currently unbeaten in their last 18 matches in all competitions, will face Porto in the round of 16 of the Champions League across two legs next month.
"Don't forget they are still in the Champions League, they could win that," Keegan said of his former club. "Why not? They are in it. They have Porto next, which won't be easy. But it's a tie they could come through.
"At the moment, I think all the top teams in there have a problem of one kind or another. Are Manchester United better than Liverpool? Probably not. Are Chelsea? Probably not."
Keegan managed an attack-minded Newcastle United that finished runners-up to Manchester United in the 1995-96 Premier League and sees similarities with that team and Liverpool under Klopp.
"I think Jurgen fits like a glove," Keegan added. "He gets the Liverpool humour. He gets what the fans want. The fans enjoy watching him kick every ball. You feel like he's going to tackle someone running down the line at times. He comes with a great track record, You can't argue with what he achieved at [Borussia] Dortmund.
"I enjoy watching this Liverpool team. What people have to understand is that if your best players are inventive -- and Liverpool's are -- then your strengths are at the front. Liverpool's weaknesses are at the back. You have to play to your strengths. Liverpool have to go and attack and hope they outscore teams. We had that policy a bit at Newcastle and we nearly won the league.
"[Virgil] Van Dijk is a very good defender and that signing may give them a solidity at the back which they haven't had before."