Liverpool have spent over £170m on new players this summer as Jurgen Klopp looks to build a side capable of challenging City for the Premier League title.
Pep Guardiola’s side broke the 100-point barrier last season with Liverpool, finishing fourth, an incredible 25 points behind the champions.
Despite the new arrivals of Alisson, Fabinho, Naby Keita and Xherdan Shaqiri, Murphy feels the team’s quality on the whole is inferior, claiming only Mohamed Salah and Virgil van Dijk would be good enough for City.
“Fabinho, Keita, Alisson are all good players and they give Liverpool strength in depth and competition for places, which does increase performance, but would any of those players get in City’s team?” Murphy told talkSPORT.
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“[Mohamed] Salah and [Virgil] Van Dijk would get in City’s team. Other than that, probably no others [would get in].
“You can’t base your transfer policy on buying better players than City have. It is nearly impossible. You can’t buy a better player than [Kevin] De Bruyne in midfield, so you have to compete in a different way.
“What I like that Klopp has done is he has signed quality where he has needed it – the middle of the park they were lacking – there is great competition for places and he did it early.
“Shaqiri is a good ‘un as well. That is not bad business the money they have spent there. He had a good World Cup and he will create competition for places.
“Liverpool have done really well and will bridge the gap with City.”
City have already secured their first trophy of the season following a convincing 2-0 win over Chelsea on Sunday in the Community Shield.
Liverpool, meanwhile, have enjoyed a good pre-season and begin their Premier League campaign on Sunday with the visit of West Ham.
But ahead of the campaign, Klopp downplayed Liverpool’s title chances.
“The League will be difficult,” Klopp said.
“It is not about judging our situation and thinking ‘wow, really good.’
“We need to be ready each week, not only for a few games. This is our challenge.”