Mohamed Salah is performing at a higher level than anyone else in Europe right now and Liverpool must tie him down to a new contract or risk losing him, according to Jamie Carragher.

Salah's sensational, solo goal was the highlight of Liverpool's thrilling 2-2 draw with Manchester City at Anfield on Super Sunday as he beat Joao Cancelo, Bernardo Silva and Aymeric Laporte before firing an unstoppable finish beyond Ederson.

The Egyptian, who also set up Sadio Mane's opener, has found the net in seven consecutive games for the Reds, equalling his longest scoring streak and becoming only the fourth player to reach 100 Premier League goals for Liverpool in the process.

Carragher believes the 29-year-old has already secured his status as a Liverpool legend who is worthy of a place in the club's all-time XI, but with his contract due to expire in 2023, the Sky Sports pundit feels it is imperative his future is sorted out.

"I don't think there's anyone playing better in the world or in Europe at the moment," Carragher said on Sky Sports. "His record at the start of this season has been absolutely outstanding.

"You can never really question him for what he's done at Liverpool - if at all - but right now is as probably as sharp and as good as I've ever seen him."

Liverpool agreed new deals with Virgil van Dijk, Trent Alexander-Arnold, Alisson and Fabinho during the summer but they are yet to reach an agreement with Salah.

Carragher accepts Liverpool have to weigh up financial considerations in their contract negotiations but believes Salah is well worth the expense.

"His finish was world-class and he is world-class," added Carragher.

"I said this over the last couple of weeks - he is one of the greatest players to play for Liverpool. The club have lost Roger Hunt in the last few days, one of the greatest goalscorers the club has ever seen.

"Mo Salah is one of them, in terms of Ian Rush, Roger Hunt... Mo Salah is up there. He goes into a Liverpool greatest XI.

"You think of the greatest players Liverpool have had - he goes on that right side, there's absolutely no doubt about it.

"I know the situation Liverpool are in. They don't have the finances of Manchester City when you think of the wages they give out. But right now, Salah is playing as well as anyone in European football.

"Liverpool cannot afford to let his contract situation drag on, with the threat they could lose him in the next two years.

"This is a guy who really looks after himself, and you can see that when he takes his top off when he scores a goal.

"I'm not saying he's going to be like Cristiano Ronaldo when he's 35 or 36, still topping the goalscoring charts, but I think this lad's got a lot in him as he goes into his 30s.

"It's imperative that at his peak he's still scoring goals in the red shirt of Liverpool."