The Reds reached the European showpiece last season following a 5-1 win over Premier League champions Manchester City in the quarter-final.
Liverpool FC lost 3-1 to La Liga giants Real Madrid in the Champions League final in Kiev back in May.
Jurgen Klopp’s side were drawn in a difficult group against Paris Saint-Germain, Napoli and Red Star Belgrade.
Liverpool FC made a promising start with a 3-2 win against the Ligue 1 giants in Parc des Princes on Tuesday night after Roberto Firmino’s winner.
Manchester City have won three Premier League titles since 2012 but the Citizens have been unable to conquer Europe.
Pep Guardiola’s side suffered a surprise 2-1 loss to French side Lyon at the Etihad Stadium in a surprise defeat.
However, Manchester City are in a relatively straightforward group containing Hoffenheim and Shakhtar Donetsk.
Former Liverpool FC striker Owen believes the Reds or Manchester City will win the Champions League this term.
“Our (England’s) teams are really at it,” Owen told BT Sport.
“I really fancy two teams this year, either Manchester City or Liverpool. I really think it’s going to be an English team.
“I think we (English teams) will be here to stay for a long period of time as well.”
Liverpool FC have beaten Manchester City in their last three meetings in the Champions League and the Premier League.
The Citizens haven’t won the Champions League but have reached the semi-final in 2016.
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