The Reds finished in fourth place in the Premier League table last term to ensure their continued participation in the Champions League.
The Merseyside outfit finished above Chelsea FC thanks to a 4-0 win over Brighton and Hove Albion on the final day of the Premier League campaign.
Liverpool FC lost 3-1 to La Liga giants Real Madrid in the Champions League final last month following goals from Karim Benzema and Gareth Bale.
The Reds were the better team for much of the Champions League final but Mohamed Salah’s first-half injury and Loris Karius’ poor mistakes cost Liverpool FC a sixth European Cup.
Liverpool FC beat Manchester City home and away in the Champions League quarter-finals after the Reds were 4-3 winners against the Citizens in the Premier League at Anfield.
Manchester United finished in second spot above Liverpool FC but their style of play has been criticised under Jose Mourinho.
Former Tottenham defender Dawson believes the Reds will be Manchester City’s biggest challengers next term.
“Liverpool for me are probably the team that, after this season, are going to go that little bit closer, and can they maybe catch City? But for me City are still the team that everyone is chasing,” Dawson told talkSPORT.
Liverpool FC have never won the Premier League title but finished in second place in 2002, 2009 and 2014.
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