Two-time European Cup winner Alan Kennedy is confident Liverpool can claim bragging rights over Everton in the Merseyside derby on Sunday – but expects the battle for league position to continue until the final day of the season.

After their outstanding display at Newcastle last weekend, where the Reds pulled apart the Magpies and struck six goals without reply, Brendan Rodgers' side trail the Blues by five points with three fixtures apiece left to play.

Such was the dominance of Saturday's victory at St James' Park, however, former defender Kennedy expects Liverpool to secure three more points when Everton cross Stanley Park.

"You have to be very confident after watching Liverpool beat Newcastle - six goals and it could have been more as well," the 58-year-old told LFC TV.

"This is a chance for other players to shine and that's what they did against Newcastle. They go in fully confident, they will certainly want to put one over their Merseyside rivals.

"I don't see why not - derby games are massive games and you want to impose yourself on it. The way Liverpool are building up, I think they've got a great chance of winning the game."

Victory at Anfield would reduce the gap between the two neighbours to two points and Kennedy believes that scenario would create a grandstand finish to the campaign on Merseyside.

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He added: "We'd like to finish above every rival, that's the key to it; you want to finish top of the league. That is not going to be the case but you want to try to get in your best position possible. We've got a couple of games where we can do that.

"This is a game every player should relish, whether you're local or a foreign player. You should relish the fact that you're playing in a local derby.

"It will be difficult because Everton have picked up - they keep getting results, grinding out results. They're a very dogged team, they like playing their football and they have got some excellent players.

"Consequently they are above Liverpool at the moment. But if you get a win, then you're coming towards the last game of the season and you've still got a chance of finishing in the top six - which every player would want to do. It would be nice to be better than last season."

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Several Liverpool squad members will be experiencing a battle with the Blues for the first time, including January signings Philippe Coutinho and Daniel Sturridge. Kennedy has faith they will not be fazed.

"They've probably played in local derbies before; they will know what the atmosphere is like. This will be slightly different for them," said the man who struck winning efforts in both the 1981 and 1984 European Cup finals.

"Coutinho has had a great start to his career at Liverpool. Daniel Sturridge has done very well and led the line now. If he stays clear of injury, we should see an attacking line-up from Brendan Rodgers.

"We've got to emphasise that we've still got to win the last few games. Everton will be the same - they will be out to get a result which keeps them in the top six.

"But, for me, Liverpool have the ascendancy, have the players and have the confidence as well to go out and get a result. It will close the gap but it will probably come down to the last game of the season."