The Spanish international has only played two of the Reds’ six Premier League games to date and has only completed 90 minutes once, in last week’s 2-2 draw with Everton.
Fabinho believes Thiago Alcantara can add an extra dimension to Liverpool midfield this season.
Thiago joined Bayern Munich’s Reds in September after helping them win the Champions League.
In the long term, however, Fabinho believes the two-time Champions League winner is a good addition.
An injury sustained in that controversial game at Goodison Park meant Thiago was unable to play in Anfield, as the champions beat Sheffield United 2-1 on Saturday night.
Fabinho said: “It is true that [the]competition for midfield positions is high.
Thiago came from Bayern Munich last month for an initial £20 million after helping the German giants win the European Cup in their last match against Bayern in August.
Brazil midfielder Fabinho, who was reappointed as central defender against Sheffield United, described his new team-mate as an “exceptional” talent.
“Perhaps it’s because the players here put in the most effort and run the most kilometers during the games.
“Since I arrived here, the midfield is the place where the manager rotates the most during the games.
“Our squad is very strong, but we know that the commitment of quality players is an asset for this team.
“He is an experienced player who inspires confidence in everything he has achieved.
“Thiago’s arrival will be very positive and he is a player who comes from an exceptional season with Bayern Munich last year.
“He can also contribute something to our team, something we didn’t have before. The quality of his passes is exceptional.
As the season is being shortened this season, Fabinho believes coach Jürgen Klopp will have to use the full range of his squad in the coming months.
“He is someone who really picks up the ball well between the lines. So I think his arrival, both his and Diogo Jota’s, will be really important for us.
“This season is a little different because we didn’t have as much time to prepare as usual and therefore didn’t have to use the whole squad,” Fabinho added.
“It’s important that we have this depth in the squad and high quality players that we can handle.