The Reds have been leading the charge for the top-flight crown for several weeks now.
A four-point advantage is held over the reigning champions, with just one stumble suffered so far at the Etihad Stadium.
Souness knows what is required to get over the line from a trophy-laden playing career of his own, and he believes Liverpool can get the job done.
He expects there to be wobbles along the way, but he is pleased to have seen Klopp’s side pick up a useful habit of grinding out results.
The ex-Reds midfielder told the club’s official website: “We’re in a great position.
“It’s not theirs to lose, there’s a long way to go and City are a really good team. Just keep your nerve and treat each game as the next one is the most important one, don’t look too far ahead.
“If you can, keep that four-point advantage and it’s first to blink really, in the long term.
“As well as being a great watch, Liverpool are a pretty pragmatic team as well; they are a pretty strong outfit when they’re not dominant, they’re still capable of winning games. That makes them a dangerous team. It makes you league champions when you can win games without being at your best.”
Experience is one factor which could work against Liverpool, having gone 29 years without securing domestic dominance, but Souness feels they are in the perfect position to end that wait.
“It’s a group that’s not done it before. In many ways, getting over the line the first time is the hardest one. People say it’s hard to retain a trophy, and it is, but I think it’s harder to win it first time,” the Scot added.
“There’ll be a period in the season when it might not go the way you want it to go and that’s when the big players step in and drag you through those moments. Liverpool have big players.
“I’ve got a sneaky feeling Liverpool will win it this year because of the slightly pragmatic way they can play at times. I don’t think they’ve been like that in the past; it was all about winning a game 3-0 instead of just 1-0.
“You wouldn’t want to swap their place for anyone else, you’d far prefer to be four points ahead.”