Hiddink took the reins at Chelsea for the final three months of the 2008-09 season, a campaign which saw the Reds finish second and narrowly miss out on the Barclays Premier League title.
Liverpool also reached the quarterfinals of the Champions League in 2009, where it was eliminated 7-5 on aggregate by Hiddink's Stamford Bridge side.
"Of course, at that time they had different players and were more leading in the Premier League," recalled the 65-year-old, who has managed the Holland national team and Real Madrid during his long career.
"This season they have had a problematic start, but this is a huge institution — it will always recover. Liverpool will always resurrect and come up to the top, where they belong."