The defending Premier League champions squandered their lead at the top of the table earlier this month after Chelsea FC were 2-0 winners against Manchester City at Stamford Bridge to end their unbeaten start to the season.
The Citizens were 3-1 winners against Everton at The Etihad last Saturday to reclaim top spot before hoping their derby rivals Manchester United could to them a favour against Liverpool FC at Anfield.
However, Liverpool FC were resounding 3-1 winners against Manchester United thanks to goals from Sadio Mane and Xherdan Shaqiri to hoist themselves back above Manchester City after 17 games.
The Reds followed up that result with a 2-0 win at Wolves on Friday night to secure top spot for Christmas Day.
The 18-time English champions have never won the Premier League title but have finished in second place in 2002, 2009 and 2014 under Gerard Houllier, Rafael Benitez and Brendan Rodgers.
Liverpool FC are mounting their first title challenge under Klopp after the German head coach led the Reds to successive top-four finishes in the last two Premier League campaigns.
Former Reds skipper Souness believes Klopp’s Liverpool FC side are capable of challenging Manchester City all the way in the title race.
“I think Jurgen Klopp’s got a really healthy group of players,” Souness told Sky Sports.
“They obviously need a wee bit of luck in terms of injuries, especially the front three – keeping them healthy and sharp will be a challenge. But he’s got a really healthy group and you’re looking at them thinking, they’re nearly the real deal, if not the real deal.”
Souness added: “I look at Man City, with all due respect to Chelsea, Arsenal and Tottenham, and it’ll be between Liverpool and Man City.”
Liverpool FC signed Fabinho, Naby Keita, Alisson Becker and Xherdan Shaqiri in the summer transfer window.
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