Former Liverpool captain Alan Hansen is impressed by the club's current transfer policy.

Hansen feels their improvement in 2011 is down to the work achieved in the transfer market.

"Critical to the improvement has been Liverpool's transfer policy which has seen several young players with huge potential brought in, predominantly from other Premier League club," said Hansen in LFC magazine this week.

"There is no way that we, or any other club for that matter, can compete with Manchester City as far as transfer fees go.

"That leaves Liverpool with a question to answer. Do you sign what's left of the bigger named established players, or do you try and build a new team around youth?

"Liverpool have done the latter and that policy of buying younger players will, I believe, ultimately reap rewards and dividends, hopefully sooner rather than later."