The Reds are in ninth place in the Premier League table and are five points adrift of fourth-placed Tottenham Hotspur ahead of their Boxing Day clash against surprise leaders Leicester City.
They have a fantastic coach in Klopp and this is a good crop of players. They will kick on again
Liverpool have only won three games in nine attempts since former Borussia Dortmund manager Jurgen Klopp took over the reins at Anfield from Northern Irishman Brendan Rodgers.
Former England and Reds number one James explained why the 18-time English champions still have an outside chance of securing a return to next season’s Champions League.
“I still think Liverpool can finish in the top four,” James told Liverpool Echo.
“They’ve had some poor results recently but we’ve seen what Liverpool can do under Jurgen Klopp.
“When everyone is on their game there shouldn’t be a team in England that Liverpool fear facing.
“The likes of Chelsea, Manchester United and even Man City have their problems. If Liverpool can get it together in the second half of the season the opportunity is there.
“They have a fantastic coach in Klopp and this is a good crop of players. They will kick on again.”
Liverpool are 14 points behind surprise Premier League leaders Leicester ahead of the Foxes’s visit to Anfield on Boxing Day.
The Reds are winless in their last three Premier League games after a 2-0 defeat by Newcastle United was followed by a 2-2 draw with West Bromwich Albion.
Klopp’s side were soundly beaten 3-0 by Watford at Vicarage Road last weekend.
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