Jamie Carragher believes Liverpool could be the only team capable of challenging Manchester United for this season’s Premier League title.

The experienced defender insists the club can be proud of their efforts this term, having moved ahead of the likes of Arsenal and Chelsea in the reckoning.

Chelsea’s form under Luiz Felipe Scolari prompted a dramatic parting of the ways last week, while the Gunners are currently involved in a scrap for fourth with Aston Villa.

And Carragher sees Liverpool’s move into second as a significant step in the right direction.

"We finished fourth last season, but we have overtaken Chelsea and Arsenal and even though everyone at the club understands that it’s not over yet by a long way, at the moment it looks like it is going to be us and Manchester United for the title," he said.

"Just by overtaking Chelsea and Arsenal in the challenge is an achievement in itself already so everyone should be proud of that."

Nevertheless, the 31-year-old was eager to stress that the runners-up spot should not be seen as their ultimate ambition. Instead, he has set his sights on a first league success in 19 years.

"A lot of people said at the start of the season that we needed to be in the title race at the end and at least be in with a fighting chance," added Carragher. "Now hopefully we can go one step further and win this title. There are still a lot of games to go, so it’s important everyone at the club remains calm."

The Reds meet the league leaders at Old Trafford on March 14 and Carragher is hoping the fit-again Fernando Torres can help them put the pressure on United before the sides meet. He added: "United have got a bit of a lead on us at the moment but if we can close that gap before we go to Old Trafford next month, that would put us in a great position — especially if we are in form at the time of that game.

"Fernando has been scoring goals recently, but if we can get him back firing like he did at the end of last season it’s going to be a massive boost for us.

"Fernando is the best striker in the Premier League, if not the world, so to be where we are already after playing so much of the season without him is a great credit to the lads, staff and management."

Liverpool’s bid could be further boosted by the sooner than expected return of skipper Steven Gerrard at home to Manchester City on Sunday.