City's exit from the Champions League last night has led to speculation that Manuel Pellegrini will be sacked at the end of the season.
Reds tactician Rodgers has reportedly been lined up as the Chilean's replacement, but Murphy believes Atletico Madrid's Diego Simeone would be better suited.
Murphy told talkSPORT: "I have heard, and I don’t necessarily think this would ever happen but, with all of Man City’s money and power, they may try and steal Brendan Rodgers from Liverpool.
"I can’t see Liverpool ever letting Rodgers go [though] because of how good he is and how good he could go on to be.
GETTY
Manchester City want Liverpool boss Brendan Rodgers
They may try and steal Brendan Rodgers from Liverpool
Danny Murphy
"There is one stand out candidate for the next Manchester City manager, and that’s Diego Simeone.
"People have talked about Carlo Ancelotti because of his tried and tested formula, but what Simeone has done at Atletico is [amazing].
"I have never seen a team play for a manager like Atletico, they are incredible. They are non-stop.
"It’s not just one team, that team has had to evolve because he has to sell his best players every summer and still competes. He’s the man."
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