Morrison believes the win against the Bundesliga outfit could be a confidence booster for Jurgen Klopp’s men, who are having are bad run in the Premier League.
Liverpool are enduring a torrid time domestically as their title defence has taken a nose dive, leaving them sitting eighth on the Premier League table, seven points adrift of top four.
The Reds have won only one of their last five league games and have not recorded a win at Anfield since a 2-1 win over Tottenham Hotspur in December; a run of eight winless matches.
Liverpool stuck to their guns to beat Leipzig 4-0 on aggregate to progress to the next round of the Champions League and Morrison, who thinks Liverpool could go far in Europe this season, believes the English side can take confidence from their recent win.
"Even though they've not been so good in the Premier league, this is a competition that Liverpool always do well in,” the former Crystal Palace man said on Sky Sports.
"Obviously, you look at the likes of Manchester City and Bayern Munich and you'd probably say they are the two outstanding favourites to win it, but you just never know?
"If you can get a good draw, keep progressing through the rounds and then get a few players back fit and firing, I think Liverpool have got a great chance.
"It's not worth getting a good result against Leipzig and then going to Wolves on Monday and not getting a positive result.
"It's going to be a difficult game and I think Jurgen Klopp knows that. However, he'll just be happy with what's happened against Leipzig and then he'll work for the rest of the week towards Monday's game, which is an important game for Liverpool because they still want to finish in that top four.
"But the result against the Germans gives them huge confidence going forward."
