He said: "Challenging for the title next year would be a miraculous season because we are so far behind at the moment, points-wise. The FA Cup and the Carabao Cup, they're trophies we've got to start the season aiming to win".
The likes of Everton, Newcastle, Bournemouth and Southampton have been linked with James, but a well-placed United source has told Football Insider that James favours a move to Old Trafford over all other interested parties and a deal is edging closer.
"Today was not the problem, you can have all the possession and chances you want but we concede easy goals and don't score at the other end", the Norwegian said.
It would be harsh to say that Liverpool didn't have a good season a year ago but after their first-choice keeper Loris Karius made a few high-profile errors, many felt that what Liverpool were missing was a top-class goalkeeper.
Phelan, who served as Sir Alex Ferguson's number two at United before departing shortly after the Scot in 2013, returned to the club alongside Solskjaer in December. As for the attack I think Rashford will play with Chong and Greenwood either side in a pacy and young front line. Telling us their players, their clients would love to be a part of Man United in the future.
"I believe in karma and if you are a good person, if you are honest and sincere with the players and the fans, sooner or later it will work".
Ole Gunnar Solskjaer took over the reigns as caretaker at the Premier League's most decorated club and everything was going swimmingly at first.
"We've got a history of making them the best". Wayne Rooney wasn't ready-made.
"I can say for me, Mick, we've been involved in loads of meetings about recruiting players and how we go forward".
At last this torrid season is over and Manchester United can sort themselves out over the summer.
He feels the key to improvement is to make a fast start and build momentum, which is why he wants his players to return for pre-season training on July 1 in their best possible shape.
"It's a big summer", Solskjaer said. "And he will probably announce later on where he's going to continue his career".