Andoni Iraola said Alexander Isak is in "a really good place" as the Liverpool striker looks to bounce back from his miserable debut season at Anfield.
Isak struggled with injuries and poor form after making an acrimonious £125-million move from Newcastle 12 months ago.
The 26-year-old Swede netted just four times in all competitions last season, but already has three goals in four games this term.
Reds boss Iraola is impressed with Isak's adaptation to his tactics since the Spaniard arrived from Bournemouth to replace the sacked Arne Slot in the close season.
"I think he's doing well. I'm happy with the improvements he's doing game to game," Iraola told reporters on Friday.
"Physically, he's in a really good place. I think he moves with confidence and technically we know he is very good.
"He is understanding better what we need from the No 9 position."
Isak has started all four matches so far this term and clocked up 332 minutes, a stark contract to last season when he was hampered by fitness problems including a fractured ankle and fibula in December.
Isak agrees with Iraola that he is finally beginning to feel comfortable at Anfield.
"Firstly, really good that the season has started again, obviously you miss it being away," Isak told Liverpool's website.
"I'm feeling good with the pre-season and the start of the season as well, scoring a couple of goals. It's just about keeping this rhythm.
"I feel good, I feel like I'm in a good place. With the team as well, we're getting better and better. We want to keep this rhythm."
Isak's form is crucial to Liverpool's hopes of improving on last season's disappointing fifth-place finish in the Premier League.
Unbeaten in his first four matches in all competitions, Iraola will face Fulham at Anfield on Saturday.
Iraola hopes Isak can form a strong connection with France forward Bradley Barcola, who recently joined from Paris Saint-Germain.
Barcola should be available after coming off in the second half of Wednesday's Champions League victory over Atletico Madrid.
"Barcola was just cramp. We have to evaluate how he is today, but there is no injury. I think he should be available if everything goes normal," Iraola said.