Liverpool have beaten fierce competition from Europe's top-tier clubs to rank top of the Euro Club Index for the first time in history.
Barcelona previously held the top spot of the ECI, but they have now fallen below Liverpool and Manchester City to third place.
The ECI's rankings are based on teams from the highest divisions of all European countries and "reflects the actual playing strengths in Europe."
Liverpool were once ranked 37th halfway through Brendan Rodgers' first season in charge at Anfield.
And the Reds were 27th when Jurgen Klopp first took charge in 2015, but the Champions League holders now take their place at the top of the pile.
Liverpool are off to a flying start to the Premier League season and have not lost a single match in the league.
Klopp's men hold a six-point lead over defending champions Manchester City as they once again mount a serious challenge for the league title.
The Liverpool boss admitted after his side's dramatic 2-1 win against Aston Villa on Saturday that he didn't ask about City's result against Southampton.
"I never thought for a second about the Man City game and the Aston Villa game together," he said.
"I was never thinking, 'We should win there because maybe we could lose next week.'
"I didn't even ask about other Premier League results after our game. It's not important.
"We play Genk [in the Champions League] and then we play Man City.
"Yes, it's important [to win] at Aston Villa, the way they set up -- it was really difficult. But we did it.
"Now we have to collect the bones and prepare for the next challenge against Genk."
Liverpool host Genk for their Champions League clash on Tuesday before welcoming City to Anfield on Sunday for their Premier League showdown.
