Carlo Ancelotti's Everton can become "the next proper challenger" to Liverpool in the Premier League, says Reds manager Jurgen Klopp.
They host champions Liverpool in the Merseyside derby on Saturday.
"What I think about Carlo Ancelloti was never a secret. I couldn't respect him more. He's a wonderful human being," Klopp told BBC Football Focus.
"When I heard he was going to sign for Everton I thought 'Uhhh, the next proper challenger in line'.
"They did the perfect business in the summer. They found exactly the players that they needed to improve an already pretty good football team.