The former England winger thinks that his former side's stability under Brendan Rodgers will see them qualify for the Champions League, but said that Louis van Gaal's team will struggle to break back into the top four.
He told talkSPORT: "Liverpool are playing with consistencyy. They will be challenging Chelsea and Man City. I believe Liverpool will finish third but I don't think they'll be far off the top.
"Manchester United don't have the consistency yet to challenge for a top three or four spot."
United host Queens Park Rangers on Sunday afternoon, while Liverpool entertain Aston Villa at Anfield.