Danny Murphy believes Liverpool need to prioritise defensive reinforcements in the transfer market and should also consider bringing in a striker due to Jurgen Klopp's reluctance to build the attack around Daniel Sturridge.
The Reds have spent big to recruit Mohamed Salah from Roma, adding to the array of versatile forwards at Klopp's disposal.
They have also been heavily linked with Southampton centre-back Virgil van Dijk, a player Murphy believes would significantly strengthen the starting XI at Anfield.
"Personally, [I think] the problem for Liverpool is more defensive," he told Omnisport.
"I think the Van Dijk thing is close. That would be a phenomenal signing. They definitely need a left back, as we know. Possibly a midfielder as well, but there's definitely more business to be done at Anfield.
"My understanding is that they really are trying to push the boat out in bringing new players in to try and compete."
Liverpool's rivals Manchester United have parted with a significant sum to lure Romelu Lukaku from Everton to Old Trafford, leaving Murphy to suggest the Reds should follow suit and recruit a dedicated centre-forward of their own.
"I suppose the other question is do they need a striker who can get 20 goals a season, because [Roberto] Firmino generally played that role," he said.
"I mean they have got one in Sturridge but he doesn't seem to fit the bill for what Klopp wants from his strikers.
"So maybe they'll look there as well, we'll have to wait and see."