UEFA have released their latest five-year club rankings and Liverpool are currently third, behind Bayern Munich and Manchester City.
Four English teams have made the top 10 as Chelsea sit behind the Reds in fourth and Manchester United are 10th.
The rankings are determined by UEFA club points over the last five years and during that time, match results (two points for a win and one point for a draw) are awarded from the group stage of the Champions League, Europa League, and Europa Conference League onwards.
Jurgen Klopp's side collected 30 points in 2017/18, 29 points the following season, 18 points in 2019/20, 24 points last term and they have six points so far this season - totalling 107 points.
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In the last five years, Liverpool have reached the Champions League final twice and lifted their sixth European cup after they beat Tottenham Hotspur in the 2019 final.
However, in the previous two campaigns, they've failed to progress further than the quarter-finals as they were knocked out by Atletico Madrid in the round of 16 in 2020 and Real Madrid in the quarter-finals last term.
Liverpool's ranking five seasons ago in 2017 is a stark contrast to where they find themselves now, though.
Despite reaching the Europa League final in 2016, the Reds were ranked 34th and were the sixth English club in the table.
The highest ranked English team at the time was Chelsea, who sat 10th and they were the only Premier League side to make the top 10.
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The recent dominance of English teams in European football is evident in the fact England overtook Spain in UEFA's country rankings last season.
Spain had been top of the table since 2013 due to the consistency of Barcelona, Real Madrid, Atletico Madrid and Sevilla in European competition.
However, two of the last three Champions League finals have been contested by English teams as Liverpool and Tottenham battled it out in 2019 and Chelsea and Manchester City contested last season's final.
Liverpool have come a long way in Europe under Jurgen Klopp and their progression is starting to pay off as they rise up the ranks.
They face a difficult challenge to keep their spot moving forward, though, with a tough Champions League group consisting of AC Milan, Porto and Atletico Madrid.