"When you look through the squad you have to believe that this time they really do have a serious chance," says Savage.
"The main factor is Steve Gerrard's decision to remain at the club himself. If he hadn't you could have counted them out immediately.
"If they can hang on to Milan Baros - who has been talking about interest from Real Madrid - they will have three top-line strikers with goals galore in them.
"Michael Owen, Baros and Djibril Cisse - that's a trio that most managers would give a limb for. If new boss Rafael Benitez can keep them all at the club then they really could be not so much the shock candidates but joint favourites with Manchester United and Arsenal.
"Rafael will be just as determined as Jose Mourinho at Stamford Bridge and that is a real battle within a battle.
"He has Michael Owen, hopefully Baros and, of course, the newly-signed and highly-rated Cisse which looks a pretty scary set of options.
"It's always going to be two from three so much will depend on whether he is able to keep them all happy.
"Liverpool has of course been a club waiting to explode for a long time and when you look at Benitez's track record you have to believe this could be the year."