"They have talent all round, the likes of Steven Gerrard, Milan Baros, Jamie Carragher, Sami Hyypia: they are all very good players," said Terry.
"We have a lot of respect for them, and they will be aiming to get revenge on us for the League Cup final. We have played them three times already, so obviously they are going to be pumped up and wanting to beat us.
"We have got them at home first and hopefully the fans can get behind us and we can get a nice cushion. They are solid defensively and did well at Juventus, but we have been scoring goals lately, and can hopefully break them down.
"I think maybe they have a little advantage being at home in the second leg, they have got great support with the Kop and their other fans behind them, it is going to be a great night for everyone."