Xavier said: "I think Liverpool can challenge Chelsea, even this season."
"People think the fight is just between Manchester United and Arsenal to challenge Chelsea. But I believe Liverpool are involved in that fight as well," he added.
And Xavier said he predicted the incredible events which saw the Reds triumph in Istanbul.
"I was not surprised that Liverpool won the European title," he said, adding, "I knew when they faced Chelsea in the semis that they would get to the final because of the fighting spirit in the dressing room, that was one of those precious things I have experienced in my career."
And although the Reds do have two games in hand over Chelsea, the Premiership champions have still managed to stretch the gap with Liverpool to a staggering 14 points, leaving much improvement needed for the Reds to fulfill Xavier's latest predictions.