The former midfielder believes Jurgen Klopp needs to add in several positions.
He may have changed that stance in recent weeks though, with a series of disappointing results causing his side to come in for criticism.
First there was the 3-0 loss to Watford, while last weekend also saw them comfortably beaten by West Ham at Upton Park.
And Murphy has urged them to be busy in January, and seek to improve several positions.
“I am looking at Liverpool to bring in a few because they really need to finish in the top four,” he told TalkSport.
“I think they need a goalkeeper, a centre-half and maybe if you could get someone on loan with a bit of pace. Someone you could nick who is not playing in one of the big teams.”
“Most importantly, though, they need a centre-half because I think they look vulnerable.”
The problem for Klopp will be finding the right players he would want for a price he is willing to pay.
The January transfer window is notoriously hard to do good business in, with prices for players often over inflated, as teams are unwilling to sell halfway through a season.
That is sure to put the German off making a move in the current window and focus on moulding the squad he inherited in the summer instead.