"It's going to be tough because Chelsea, Manchester City and Arsenal are all good sides and potentially got bigger and better squads," said the former Reds striker.
"Liverpool are there on merit and I don't see any reason why they can't win it. It will be tough but they have as good a chance as anyone else.
"At the start of the season Liverpool's aim was to get into the top four. That was always going to be tough because the squad's not as deep as a lot of the teams in the Premier League.
"I hope I'm right in saying this but I think they're nailed on for Champions League They deserve to be there.
"At the time now, they are second in the league, they are not lucky, they are there on merit and they've been exciting and they're good to watch this year."