The Reds were in brilliant attacking form against Pep Guardiola’s men at Anfield as they raced into a 3-0 lead inside 31 minutes.
Liverpool FC took the lead when Mohamed Salah fired home from close range in the 12 minute at Anfield.
Alex Oxlade-Chamberlain then made it 2-0 to the home side with a superb long-range strike in the 20th minute on Merseyside.
And Sadio Mane made it 3-0 to the hosts when he headed home Salah’s cross in the 31st minute to put Jurgen Klopp’s men firmly in control of the Champions League tie.
The win leaves Liverpool FC in control of the quarter-final tie ahead of the return leg at The Etihad on Tuesday night next week.
And former Chelsea FC midfielder Lampard was clearly impressed by what he saw from the Reds at Anfield on Wednesday night.
Speaking to BT Sport after the game, Lampard said: “Credit to Liverpool, they had heroes all over the pitch and it made it very difficult for them.
“It wasn’t the City that we’ve been used to seeing this season. They couldn’t match Liverpool for their hard work.”
Liverpool FC will now switch their attentions back towards Premier League affairs and their trip to Everton in the top flight on Saturday lunchtime.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news