Both Liverpool forwards Sadio Mane and Mohamed Salah have been linked with moves to Real Madrid in recent months
McManaman believes that Liverpool's best players no longer need look elsewhere to advance their careers with the club's recent growth influenced by Jurgen Klopp.
The former Liverpool and Real Madrid star has urged the Anfield stars not to consider a move to La Liga as they are already at the best club in the World.
"Is the Premier League ahead of La Liga? Yes, right now it is," McManaman told DAZN.
"Because when you are playing well in England, for example, there are clubs in Spain that want those players. But now we are lucky because the best clubs are in England.
"So you don't need to play in Real Madrid, for example, because the best teams are Liverpool and Manchester City. Liverpool fans are very happy with the [Mane-Firmino-Salah] trident.
"Right now Liverpool are stronger than Barca, Madrid or Juventus, but you need a bit of luck when you play in the Champions League. In February and March the Spanish teams will also be stronger and better. But speaking right now, Liverpool and Manchester City are Europe's best clubs."
McManaman was one of Liverpool's special talents during the 1990s, joining the likes of Robbie Fowler, Jamie Redknapp and Michael Owen in coming through the ranks to star at Anfield.
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