That's according to Red legend Jamie Carragher.
Jurgen Klopp's team finished fourth in the Premier League last season and suffered the anguish of the Champions League by losing to Real Madrid in the final.
Liverpool have strengthened well this summer, spending £ 175 million to bring in four new faces, including goalkeeper Alisson to replace Loris Karius.
The Merseyside team is receiving big tips to challenge City at all times, with Pep Guardiola looking for his second consecutive title.
"I think City will retain its crown."
Liverpool legend Jamie Carragher
But Carragher admits that he is concerned that City will continue its momentum and have endorsed Liverpool to finish in the top three.
"I am cautious about the possibilities of Jurgen Klopp," he said. Telegraph.
"There is still a formidable obstacle on the way, Manchester City, I think City will retain its crown.
"Pep Guardiola could be on the threshold of an era of dominance, winning successive titles in a way that has eluded clubs since the retirement of Sir Alex Ferguson.
"For those who persecute, not only should they improve their actions in a massive way, but they need the city to decline significantly.
"Guardiola's team can not keep repeating the abnormally brilliant performance of last season, but such is the standard set, anyone with aspirations to catch them must secure at least 90 points.
"If City can not replicate its form, Liverpool must take advantage before everyone else can agree.
"The club has not had more chances of reaching this number of points in 28 years, regardless of whether it will be enough to finish at the top.
"Normally, when naming potential winners, there are three clubs ahead of the rest: Manchester City, Manchester United and Chelsea.
"The next three – Liverpool, Arsenal and Tottenham – tend to fight for a place in the Champions League.
"Although they finished fourth last season, I think Liverpool can replace Chelsea in the top three this season.
"That is a sign of significant progress, the club is in a situation where it has not been enough."
Liverpool will start their Premier League campaign tomorrow, when they welcome West Ham to Anfield.