“First and foremost we should stop behaving like it is a funeral,” Klopp said. “I didn't say that to the boys but it's a little bit the mood here.
“We still talk about football and these kind of things can happen. In my life, much worse things happened and I'm still here.”
The German added that he did not expect champions City to slip up with four matches remaining.
“The only chance we have is if something goes our way. Imagine City lose, I can't see it, but imagine if they do and we lose it [the title] because we don't believe any more. That would be crazy.
“My problem is not City against Newcastle, it is that we play against Aston Villa on Tuesday.”
Liverpool, who have already won the League Cup, are chasing a quadruple of trophies this season after reaching the finals of the FA Cup and Champions League.