The Merseyside giants have won just two of their opening eight league games and are languishing in tenth in the Premier League table.
They are 14 points behind league leaders Arsenal and are six points away from Chelsea, who are fourth in the league table at the moment.
There are significant concerns amongst Liverpool fans that their side may not finish in the top four but Thompson stressed that he has no such worries and feels the Reds will eventually climb up the table.
He insisted that their early season form is nothing but a blip and the game in hand Liverpool have over some of the teams makes their position look a lot worse than it actually is.
The former Red stressed that once everything settles down this season, Liverpool will find themselves in the top four.
Thompson said on Off The Ball: “I think we will finish in the top four.
“We are having one of those blips as we did the other year when we lost six on the run, people tend to forget that and we certainly came out of that well enough.
“I think this team will do.
“At this early stage that extra game that we will catch up on the other teams is a huge thing and that’s hanging over us.
“We take another three points at this early stage, things look a lot brighter and everything closes up a little bit more.
“When everything gets settled, you will see Liverpool up there.
“I have no worries about Liverpool being in the top four.
“Will there be a title race involved?
“Hopefully, but it doesn’t look that way at the moment.”
Liverpool will look to rekindle their Premier League season when they host champions Manchester City at Anfield on Sunday.
