Gary McAllister believes Liverpool are a "couple more additions" away from challenging at the top level again.
The Reds endured a disappointing campaign last season, finishing fifth and outside the Champions League places for the first time since Jurgen Klopp's debut 2015-16 season at Anfield.
Since then, Klopp has led Liverpool to both Premier League and Champions League glory while finishing runners-up in those competitions a combined four times during his tenure.
As they look to bounce back from only their second season without a trophy in the last five campaigns, McAllister believes Liverpool are only a couple of signings away from once again fighting for silverware.
McAllister said: "I think last season, when you look for the reasons why they were quite a bit behind Manchester City, I think there'll be loads of things you could come up with and they always seem to sound like they are excuses.
"But the way the club finished the season and the way the manager and the players got together to finish the season really well, even though they just missed out on the Champions League, I feel with the signings, I think everybody must feel really positive.
"I'm looking at the recruitment and looking at some of the players we have been linked with as well, with a couple more additions I'm sure Liverpool can be challenging at the very top."
The Reds have made it a priority to refresh their ageing midfield, with key men of recent years such as Jordan Henderson and James Milner allowed to leave Anfield while talents like Alexis Mac Allister and Dominik Szoboszlai have been brought in to replace them.
McAllister is particularly enthused by the arrival of Mac Allister, who boasts a World Cup winner's medal after playing a key part in Argentina's triumph in Qatar last year.
"Yes, there's been some interesting new signings," McAllister added. "Well, first and foremost, they bring quality.
"You’ve also got the added bonus of Mac Allister being a World Cup winner, it brings the confidence that comes with that. Both are very, very talented young players. Younger players [who] are more vibrant but also with the ability to score a goal and make a goal.
"He [Mac Allister] is somebody who can play in two or three positions. But the big thing for me with Mac Allister when you watch him, he's a very good player when his team is in possession of the football, but more importantly, when you look at the other side of the game when you don't have the ball. I think that's where Mac Allister has caught my eye as well.
"He's not frightened of hard work; he works really hard for the team out of possession. You see a player that ticks a lot of boxes, and then the impressive thing is out of possession. That's a big thing."
Liverpool's spending for the window might not be over yet with the Reds reportedly keen on Southampton's Romeo Lavia, while Fabinho's impending move to Al Ittihad is set to bring in £40m.
McAllister has faith the club will give Klopp the financial power many fans feel his work has merited, explaining: "The recruitment is and has been pretty good over the last [seasons], certainly during the period with Jurgen.
"There's a new head of recruitment and I'm sure they're continually watching the market and they're continually watching who's available and who can be bought.
"I think when somebody of quality becomes available, I'm sure Liverpool will be there competing against everybody to try and bring the best players that are needed at Liverpool."