Gerard Houllier has hailed Kenny Dalglish's impact at Liverpool following his return to the club last year.
The Frenchman, who stepped down as the manager of Aston Villa in the summer after suffering a heart scare, insists that Dalglish will lead the Anfield outfit back to the top of the table next season.
"Kenny is doing a good job. He is trying to change the team and this is a transitional season for them. They are making good progress," he said.
"They could do with five or six more points, but they have been a bit unlucky at times. Decisions have gone against them and there have been games they have dominated but didn't score.
"I don't believe they will be able to challenge for the title – not this season. By that, I don't mean they won't reach the top four. But next season should be better. It is a bit like Manchester City, who are far better this season than last."
Meanwhile, Liverpool will look to move into sixth place with a win at Aston Villa this weekend.