Former Liverpool striker Dean Saunders believes that a lack of investment in the transfer market is hurting manager Jurgen Klopp's ambitions this season.

The Reds have suffered a surprising dip in form since the turn of the year and have dropped down to the fifth spot in the Premier League following Monday night's 3-1 loss at Leicester City.

Saunders added that the German is at a disadvantage because of the Reds' inferior spending power as compared to those of other top clubs.

"These are the players he's brought in," Saunders told talkSPORT.

"Grujic, Red Star Belgrade, £5m. Shamal George, youth system, nothing. Mane £30m, Karius £4.7m, Matip, free, Klavan £4.2m, Wijnaldum £25m.

"I heard someone on the tele say, 'He's a bargain that [Manolo] Gabbiadini at £20m'. Southampton spent £20m on Gabbiadini and it's considered cheap.

"Klopp's sold a lot of players, he's got £73m-worth of players he's sold and he's spent £69m. That tells me he hasn't got the money to buy top defenders."

Saunders added: "This is a work in progress for Liverpool, but they're still in there [challenging for a top four place].

"I know the run of results have been bad. They played Leicester at the wrong time last night, and admittedly Leicester were a yard quicker all over the pitch.

"But I don't think Klopp's got the money of all the teams around him. You look at all those teams around Liverpool – he hasn't got anywhere near as much money."