The Spaniard left German giants Bayern Munich to move to Anfield for around £25m in September last year but has so far failed to live up to expectations with the Reds.
Former Liverpool striker Owen believes that Thiago has shown glimpses of his impressive passing and technique on the ball, but he has been less convinced by the 29-year-old's recent performances and has concerns over his suitability for Klopp's high-intensity brand of football.
"He's struggling, like the rest of the team but it's not his fault. Playing out wide, you need more legs. But if you put him central then that goes against what Liverpool have based their success on," Owen told Premier League Productions.
"But, a one-off game, Champions League final tomorrow and my whole squad was fit. I would go back to type and no [he does not play]. How did we win the Champions League? He's so talented. He's one of the most talented in the world, yet we are saying if it was a big game tomorrow.
Thiago is yet to score or provide an assist in his 16 appearances for Liverpool and has only been on the winning side seven times so far this campaign.