The Reds were looking to protect a 3-0 lead from the first leg of the quarter-final clash after a dominant performance at Anfield.
Liverpool FC suffered a setback in the second minute when Gabriel Jesus finished past Loris Karius after Raheem Sterling appeared to foul Virgil van Dijk.
Manchester City pressed for a second goal before half-time but Bernardo Silva hit the woodwork before Leroy Sane had a goal ruled out for offside.
Mohamed Salah levelled in the second half with his 39th goal of the 2017-18 season after Sadio Mane’s mazy run into the Manchester City area.
Brazil international Roberto Firmino made it 2-1 thanks to a clinical finish after Nicolas Otmaendi failed to clear his lines.
Former Manchester United defender Ferdinand spoke in glowing terms about Liverpool FC following their progression to the Champions League final.
“5-1 against the best team of the league this year… a convincing 5-1 beating. It was a phenomenal display from this Liverpool team,” Ferdinand told BT Sport.
Liverpool FC won the Champions League in 2005 after the Reds came back from 3-0 down before beating AC Milan on penalties in the shootout.
The Reds lost 2-1 to AC Milan in the Champions League final at Athens.
Liverpool FC have reached the semi-finals for the first time since 2008.
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