"The big talking point on Merseyside at the moment is the battle for fourth place and I'm backing Liverpool to hold off the challenge from Everton and take the honours," said the Reds legend who was famous for breaking Blues' hearts.
"There is obviously a lot at stake because not only will the winners get to have a crack at qualifying for next season's Champions League, they will also have the local bragging rights which is very important in this part of the world.
"Everton have done well this season and it is credit to David Moyes and his players that they are challenging.
"They are in good form at the moment and I am sure confidence will be high at Goodison. But the big thing for me is that when Liverpool really need to win games they more often than not do so.
"They have proven this time and time again in Europe and now they have a similar challenge at home I'm sure they will rise to it.
"Both clubs have big European games on the horizon - Everton meet Florentina in the UEFA Cup on Thursday and Liverpool play Inter Milan a week today - and that means both will have to fall back on their squad strength.
"You cannot play the same starting line-up week in, week out in the modern game because injuries, suspensions and loss of form will always take their toll.
"So when this does happen you have to be able to call on players from your squad to come in and do a job and I just feel Liverpool have the edge when it comes down to this.
"Liverpool also look like they are coming back into form at the right time, particularly after winning for the first time at Bolton under Rafa Benitez, and although there will be a few twists and turns along the way I'm backing them to take fourth place."