Manchester City went ahead with 19 minutes on the clock of the Champions League quarter-final first leg through Kevin De Bruyne.
Dortmund though pulled level with just six minutes left in the game when Marco Reus struck, grabbing a vital away goal.
The Premier League leaders ensured they would head to the second leg in Germany with an advantage however as Phil Foden made it 2-1 in the 90th minute.
Manchester City are big favourites to finish the job in Germany and progress to the semi-final, but McAteer thinks out of all the quarter-final ties, the Citizens’ one could provide the shock, despite the first leg result.
The former Ireland international thinks Dortmund can knock Manchester City out and said on LFC TV after Liverpool lost at Real Madrid: “It’s not over.
“If you are looking for a shock then I think that could be the shock.”
Dortmund are outside the top four in the Bundesliga this season and may need to win the Champions League to qualify for it next season.