The ball had been whipped in from a corner kick when Manuel Akanji jumped up alongside Reds goalkeeper Alisson to try and win the ball.
The Brazilian shot-stopper tried to gather the ball in his grasp, but was unable to keep hold of it and saw it spill over his head and into the path of Ruben Dias.
Dias was alert to the situation and tapped the ball home to give City a two goal lead.
But the officials instantly blew to rule out the goal deeming the contact between Akanji and Alisson to have been a foul on the Liverpool goalkeeper.
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Fans watching on from home were seething with the decision and took to social media to vent their anger.
One wrote: “Not even remotely a foul. Is football a non-contact sport now? Referees and VAR proving every single game without exception to be utterly inept.”
While another added: “That’s an absolute shocker from VAR. Alisson has had a howler again. Klopp would want the game replayed for a decision against him like that.”
A third wrote: “That’s a ridiculous call. Clearly not a foul. Refereeing in England and VAR again a joke.”
By thesun