But following the signing of Joe Cole on a free transfer, Steven Gerrard has pledged his future to the club and morale is resurgent on Merseyside.
Though Liverpool are not considered among the favourites to win the Premier League, Giggs is reluctant to rule out the possibility of the Reds beating United to a record 19th title.
"Two years ago they were close to winning the Premiership so you can never write them off," Giggs told ESPN. "They have got a new manager - it just depends how it goes really.
"It is dangerous to write off a team with Liverpool's history. They have won the same amount of leagues as us and you can't just dismiss that really. They are a huge football club and a massive team."
United's local rivals Manchester City are being tipped as outside challengers for the league having spent substantial sums on the likes of Jerome Boateng, David Silva and Yaya Toure this summer. City were beaten to fourth place by Tottenham last season but Giggs is aware of the threat of the club Sir Alex Ferguson famously described as the "noisy neighbours".
When asked if the Manchester rivalry was greater than ever, Giggs replied: "I think so. The rivalry has always been there but I think it has been turned up a notch purely because of how much money they have got.
"I felt that last season with the first game. The build-up to it was huge. The world was watching because they were watching the biggest team in the world, which is us, and the richest team in the world, which is them. It is great for the city to have that kind of interest, the world watching you, but it has probably gone up a notch with the rivalry."
When asked who would be in contention to compete at the top of the league, Giggs said: "I think the usual suspects really - Arsenal, Chelsea. I think it was an interesting season last year when everyone caught up with each other really.
"Aston Villa were fourth for a while, you have got Liverpool with a new manager, so it is difficult to say how they will do, but altogether I think it will be six or seven teams who will be going for that Champions League spot, whereas in the past it has only been four."
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