Jurgen Klopp is still capable of leading Liverpool to a top-four finish in his first season in charge, according to David James.
Defeat to Watford last time out means Liverpool sit ninth in the table and have won only three of Klopp's first nine Premier League matches at the helm after he replaced the sacked Brendan Rodgers.
The former Anfield goalkeeper, though, does not think Champions League qualification is too much to ask.
"I still think Liverpool can finish in the top four," James, who played for the club between 1992 and 1999, told the Liverpool Echo.
"They have had some poor results recently, but we have seen what Liverpool can do under Jurgen Klopp. When everyone is on their game there should not be a team in England that Liverpool fear facing.
"The likes of Chelsea, Manchester United and even Man City have their problems. If Liverpool can get it together in the second half of the season the opportunity is there.
"They have a fantastic coach in Klopp and this is a good crop of players. They will kick on again."
James does not think Liverpool need to be active in the January transfer market to achieve their goal of a top-four spot either.
The ex-England international, 45, continued: "Jurgen Klopp has said he is happy with the squad he has got and I can see why.
"It bothers me when I hear so called experts saying Liverpool have to spend big money on a striker. I don't see an urgent need to buy anyone.
"If Klopp is as good at developing players as we all think then the need to go out and buy a lot of talent isn't there.
"I don't see any particular weakness and think 'Liverpool have to buy there in January'. The squad is strong enough if they play to the level they are capable of."
Liverpool play host to surprise Premier League leaders Leicester City on Saturday.