Jurgen Klopp believes Manchester City can succeed Liverpool as Champions League winners - but sent a warning to Pep Guardiola.

City are the only English side remaining in the competition, and face Real Madrid in their round of 16 second leg next month having won the first game in Spain 2-1 earlier this year.

Liverpool tumbled out to Atletico Madrid in March but have compensated by deposing City to claim their first league title in 30 years.

And having led the Reds to a sixth European Cup last season, Klopp acknowledges their North West rivals are prime challengers to clinch their first provided they are at full strength for the World Cup-style finale - an uncertainty given the injury concern that may yet rule Sergio Aguero out of the final stages.

"The two big favourites left in the competition are Bayern Munich and Man City," said the Reds boss. "That would be an interesting game. Bayern played a very impressive season in Germany.

"The competition will be really interesting as it's completely new. But when you see the Man City squad - and I've said before that everyone needs luck - if you want to win the Champions League, you should have your best line-up ready for the final if that's possible.

"But even in our game against City (on Thursday, which Liverpool lost 4-0), we should have scored three goals. Don't forget that. On a normal day, we'd have scored three goals in that game. They have so much quality, but no team in the world is perfect.

"City are not, Bayern are not, we are not. But you need to be really perfect in decisive moments to win the Champions League.

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"I will watch it, but unfortunately I have nothing really to do with it this year."