Liverpool boss Brendan Rodgers has admitted that he does not have the resources to compete with the biggest teams in the Premier League.

The Reds have been active in the transfer market over the past year as they brought in Fabio Borini and Joe Allen last summer and also signed Phillipe Coutinho and Daniel Sturridge in the January transfer window.

Rodgers told reporters: "Chelsea spent a huge amount last summer to try to get back towards the top of the Premier League again, and that was on a team that had just won the Champions League.

"It is simple: I just don't have the resources to go out and do that. What Chelsea did demonstrates the task we face in trying to make that step forward.

"I believe we will ­improve again next ­season, but we will have to do it in a different way.We finished eighth last year and we might finish seventh this time. That might not seem like a lot, but it is one step towards where we want to be."

Liverpool face Chelsea at Anfield in the Premier League.