The Reds trail Manchester United by five points in the title race.
But Dutch striker Kuyt insists the Reds have enough quality to claw back the difference.
He said: "It's right to say we have players who are just reaching their peak.
"Steven Gerrard just seems to get better every season. Maybe he hasn't even reached his peak yet.
"He scores loads of goals and everyone can see how important he is. It's the same with Fernando and a few others.
"We have a lot of young, talented players who have now been at the club a long time.
"I think this is the best team I have played with at Liverpool."
Liverpool face Manchester City on Sunday and Kuyt has been impressed by the Blues' £33million striker Robinho.
Kuyt added: "He's a fantastic player and he's done really well.
"It's not easy coming from the Spanish league because it's more physical here.
"I thought it would be tough for him but he's shown he can do really well here.
"He's scored a lot of goals and I'm sure as City get stronger as a team he'll become even better."
Originally posted by Dead_Man_Inc:DIRK KUYT believes Liverpool will only get better as they challenge for the Premier League.
I like him as a player, but he should stop dreaming