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The Reds are expected to sign a new centre-back in the January transfer window after seeing Virgil van Dijk ruled out for several months with a knee injury amid a growing defensive crisis.
Bayern, meanwhile, are likely to lose David Alaba and Jerome Boateng at the end of the season and will have to invest in their back line.
France international Upamecano was recently backed to become a world-class star by current Leipzig coachJulian Nagelsmann and his former boss Rangnick believes he is good enough for the European and German champions.
Asked if he believes he would excel in Bavaria, Rangnick toldSport1:"Why not? Bayernknow this player well, you can assume that. Physically, Bayern saw that in direct duels: no one will run away from him.
"He might still have one or two risky balls too many in a game, but he will certainly learn in the next few years.
"I got to know Upa and his family over many years. They not only make decisions that sound good to them in terms of his image, but they also make decisions based on the feeling of what is best for the player himself."
But Upamecano is not the only defender in Nagelsmann's side that can reach the top level according to Rangnick, as he highlighted 21-year-old Ibrahim Konate as astar.
"There are a few others in Leipzig: I see Ibrahim Konate on the same level," he said.
Bayern signed promising defenderTanguy Nianzou from Paris Saint-Germain in the summer transfer window and although the 18-year-old is yet to feature for Hansi Flick's team, Rangnick believes he will become a regular starter before long.
"I was in contact with the player and his parents for two years," he added. "He is an exceptional talent and will be one of the best central defenders of the next 10 years.