Liverpool dropped down eighth in the league table on Sunday as they lost again at Anfield to 18th placed Fulham.
The Reds have now lost a sixth league game on the bounce at home and have not scored a goal at Anfield from open play in over 12 hours of football.
Liverpool are still just four points behind the top four spots, but given their form, McManaman cannot see them making it and believes that they need to win the Champions League to be in the competition next season.
The former Red said on Premier League TV after the Fulham loss: “Yes, definitely [I am worried about their Champions League hopes].
“I think their only way back into the Champions League is to win the Champions League.”
The former winger believes that getting into the top four is going to be even trickier for Liverpool as there are more than just a handful of teams who are currently vying to qualify for the Champions League.
“You are not just chasing one side for a Champions League place.
“You are chasing six or seven, and that’s the difficult part.
“It is starting to get more difficult.”
Missing out on the Champions League could affect the Reds’ transfer budget unless owners Fenway Sports Group agree to inject transfer cash into the club.
