The former midfielder believes his old side can get back into the Champions League next year.
The Reds qualified for the competition the season before last as they finished second but it was a short-lived European adventure last season as they exited the competition at the group stage.
They were also disappointing in the Europa League as Besiktas knocked them out. Their league form was similarly poor as they could only manage a sixth placed finish, confirmed after a 6-1 defeat to Stoke on the final day.
McAllister though, is expecting a return to Europe’s top table next season.
“With the right additions I think Liverpool can get into that top four,” he said on Liverpool's website.
"[Other teams] will strengthen so that puts the pressure on Brendan to get back in there. But you go back two seasons and Liverpool were inches away from actually being champions.”
Europa League hopes
Winning back a Champions League spot will likely be harder than ever before for Brendan Rodgers' side though, with all the clubs above them expected to strengthen this summer.
It is almost a given that Manchester United will bring in reinforcements, while the likes of Manchester City are looking at revamping their squad. Elsewhere, Arsenal and Chelsea will likely improve as well, widening the gap from the top four.
And unfortunately for Liverpool, they are unlikely to have the spending power of last summer, with that experiment having proven something of a failure as number of signings struggled to impress.
A more realistic target for them may be aiming to win the Europa League, a very manageable achievement, with the winners of that being given a place in the Champions League as of last season.