Thompson, who was watching the Reds' game against City for Sky's Soccer Saturday, believes Liverpool will be successful under the stewardship of Rafael Benitez and wishes his former club all the best for the coming season.
Thompson said: "It's a big turnaround at Anfield since I left but I think Rafa deserves every right to change things round and bring in players.
"Things did need to be changed without a doubt and it has been a brave decision to bring in Spanish players and Spanish coaches. I think Rafa deserve a chance.
"Rafa did his stuff at Valencia winning titles and the fans are looking forward to this season. I think he will do very well and he needs time. I have been impressed with Josemi who is more defensive than Steve Finnan and for me he was man of the match in the opening game with Tottenham."