Brendan Rodgers insists there were plenty of positives for Liverpool to take from their performance at Manchester City on Boxing Day - despite succumbing to a narrow 2-1 defeat.

The Reds took a first-half advantage through Philippe Coutinho, but goals from Vincent Kompany and Alvaro Negredo put the hosts into the lead heading into the interval.

Liverpool staged a spirited second-half display as they attempted to salvage a point from the game, but though they were ultimately unable to claim an equaliser, Rodgers was pleased with the performance of his charges.

The boss told his post-match press conference: "I was very proud of the players, I thought they were absolutely outstanding.

"They really took the game to a team that is a top, top side full of top European players.

"We're disappointed not to have won the game, never mind losing the game. We showed great confidence and belief, scored a wonderful goal and could have had a few more. We've things to learn from the goals we conceded, which were disappointing."

Rodgers added: "I am very proud of the team. I was here at the Bayern Munich game when Bayern were outstanding, but apart from that every other team Manchester City have played here - really good sides as well - they've scored a hatful of goals against.

"Everybody walking away from the stadium would feel we at least deserved a point from tonight - and we're disappointed we haven't won."

Despite the praise for his players, Rodgers admitted he felt there were areas his side could have improved.

In particular, the manager was disappointed with the nature of Manchester City's second goal in which Negredo finished off a speedy counter-attack from a Liverpool corner.

"We're disappointed with the corner [that led to] the second goal - we've got to manage the game a little bit better," he reflected.

"Our enthusiasm and attitude is to score goals, but when you've got three or four minutes until half-time, it's important you manage the game and we didn't quite do that at that period, so we're disappointed with that goal.

"But I thought we were excellent in our attitude. Some of the quality of our movement and passing was exceptional, and for me it was great to see because it's what we try to work on out on the training field.

"We've lost the game, but we take a great deal of encouragement from it."

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Boxing Day's results mean Liverpool slip to fourth in the Barclays Premier League table.

However, Rodgers feels the nature of his team's display at the Etihad Stadium once again demonstrated they have what it takes to sustain their challenge for a top-four finish.

"I think people will go away and look at us as a team that's hopefully going to be up there challenging," he said.

"Our main objective is to set up camp in the top four. That's what this club has been striving for, for a number of years. But we've shown consistently over this year that we're hopefully going to be in with a right good chance of doing that this season.

"I think performances like tonight and at Tottenham show that we have the quality to do that. We didn't get the points, but we'll recover well now and get onto the next game."