Former Everton striker Andy Gray has labelled Liverpool as an "average side" with no identity following their exit from the Champions League.

The Reds, who were competing in the showpiece competition for the first time in five years this season, crashed out at the group stages following Tuesday night's 1-1 draw against Basel at Anfield.

As well as their European disappointment, Liverpool also find themselves well off the pace in the Premier League, which Gray believes shows just how far away the Merseyside outfit are from competing with the best once more.

"I remember Liverpool and the great European nights at Anfield, I remember all that," the 59-year-old told talkSPORT. "Liverpool are a mile away from the club I watch when I came to England to play football.

"They are a mile away from being able to produce the great European nights because, quite simply, they don't have the quality anymore. Liverpool, I think, are an average side. Last season they were an average side with four standout performers - Steven [Gerrard], Raheem Sterling and the two frontmen [Luis] Suarez and [Daniel] Sturridge.

"They have lost two of them (Suarez and Sturridge), Sterling has been iffy and Steven Gerrard has not quite been himself. Take those four performers away and what are you left with? You're left with what we saw in midweek – an average side looking to find its identity. They looked out of sorts. They looked uncomfortable and I'm not sure they all knew what their jobs were."

Liverpool return to action this weekend when they travel to face arch rivals Manchester United at Old Trafford.