Liverpool legend Jamie Carragher insists Jurgen Klopp's side are still in a "fantastic position" to win the Premier League title.

A loss to Manchester City last night means the Reds now hold a four-point lead over Pep Guardiola's side.

But Carragher has urged Liverpool to relax and stay focused on their remaining games.

The former Reds defender told Sky Sports: "Going into this game, the talk was 'Liverpool could go 10 points clear' - a lot of the talk was Liverpool.

"A lot of the talk over the next few days in the press will be Man City - 'Man City are back in the race and they are now favourites to win the league'.

"Liverpool need to just take their medicine, just relax, calm down, play the FA Cup game. Whatever happens, whatever team he picks, it's then Brighton that Liverpool play next.

"Four points clear is still a really good position to be in and the form they have shown, certainly against sides outside the top six, they have got a lot of those games coming.

"Liverpool just need to relax, get some wins under their belt, maybe improve that lead if they can over the next month to six weeks, but they're in a fantastic position."