The Reds started their European campaign this season at the play-off phase, having secured a fourth-place finish in the Premier League during the 2016-17 campaign.
Having established a commanding 3-0 first leg lead in that contest, a hero of the club’s last triumph from 2005 sees no reason why Liverpool cannot go “all the way”.
Riise told Sky Sports: "This year, although it's going to be very tight, they have a good chance of going all the way.
"There's some great teams left but if they play like they did at Anfield on Wednesday there's not many teams who could stop them.
"All the other teams left will have seen that performance, it was amazing. The high pressure, the intensity in the game was unbelievable, they almost did it for 90 minutes. Liverpool proved if they are at the top of their game, they can beat anyone.
"A club like Liverpool should always be in the quarter-finals, semi-finals of the Champions League and competing with the best clubs in the world.
"I think the fans have been waiting for it, the players the same, it's the best competition for a player to be involved in and you want to try to give something back to the fans when you get there.
"I'm happy for Klopp. They expect a lot, and now he's proven he can bring the club back to the Champions League."
Liverpool will head to the Etihad Stadium on Tuesday looking to finish the job against City, with Klopp’s free-scoring side aware that just one more goal will leave the Premier League leaders with a mountain to climb.
Riise added: "City lost against Liverpool, they lost against United, Liverpool have a habit of always scoring. It's important for City not to concede, because they will have to score five then.
"I think Liverpool will go through, because they've got that 3-0 lead, but the game is not over. We've seen what City can do. If they start playing as they have most of the season, keeping the ball and scoring goals, it could be a close game.
"They're good at counter attacks, which is going to be very important, and I think the main thing is not to concede a goal in the first 15-20 minutes.
"The players and the club have to go into the game like any other. Probably more compact than usual, but if they get too comfortable, and City score a goal they will get nervous again."