Manchester United boss Sir Alex Ferguson admits Liverpool are on the way back.

Ferguson was not surprised Kenny Dalglish returned to the Anfield helm after 11 years out of the game.

And he feels Liverpool are going into the latest shootout riding high after getting past Manchester City to reach the Carling Cup final.

Ferguson said: "Kenny has been a hero at Liverpool all his life.

"It was the obvious choice when he came back into the club that he would be the manager.

"They are in the final of the League Cup and I thought they played well on Wednesday night, far better than City. They have got a great lift."