Brendan Rodgers believes Celtic still have work to do if they are to compete with Europe's elite clubs but improvement from last season is clear for all to see.

Celtic finished bottom of their Champions League group last season after failing to win a game against Barcelona, Manchester City or Borussia Monchengladbach.

Rodgers conceded Monchengladbach were "better than us" and "had more pace and power" after the Bundesliga side ran out 2-0 victors at Celtic Park.

Asked if Celtic were now ready to compete at that level, the Northern Irishman said his side were still short despite undoubted signs of progression.

He said: "We still have a way to go but what's important for myself as the manager, and for the coaches, is that we're seeing improvement.

"If you think of our last games away from home in the Champion's League, we've performed to a really high level.

"You only need to look at Rosenborg's result last night away at Ajax, where they beat them 1-0. It really demonstrated the level of our performance when we played out there."

He added: "Ajax were in the Europa League final last year. It's about continual development and having that hunger and continuous drive to succeed and be better.

"That's something this group of players have and I would expect us to go on this year and continue to improve.

"It's a mixture of the natural improvement and, of course, it's about the quality of player. That's something that we will continually work on.

Celtic have all but secured their place in the group stage of Europe's premier club competition after dismantling Astana 5-0 on Wednesday in the first leg of the play-off round.

Rodgers believes his side will once again pose a threat to the continent's best but the financial muscle they flex means the focus has to be on development rather than lifting the trophy.

He said: "I thought [we could compete at that level] last year. But if you're asking if we can compete with Barcelona, Bayern Munich and Real Madrid then it's very tough.

"Goodness me, the financial difference now is absolutely huge. We'll always be competitive but I'm a realist as well.

"You're not going to be sat there writing about us winning the Champions League but our aim is to compete and be competitive and develop our game and our players over the coming seasons.

"If we can do that at the highest level in Europe then that's what we aim to do."