The points were shared in a poor game at Anfield between two below-par sides, with all the goals coming in the second half.
Martin Skrtel gave Liverpool the lead, Emmanuel Adebayor putting City back on level terms. City then went ahead through Stephen Ireland, only for Liverpool to equalise moments later through Yossi Benayoun.
Skrtel enjoyed the only genuine chance of a scrappy first half, his header at the back post brilliantly saved by Shay Given.
The Slovakia defender broke the deadlock four minutes after the break, getting the faintest of touches on to Steven Gerrard's free-kick.
City levelled terms on 68 minutes as Adebeyor found the back of the net with a downward header from Craig Bellamy's corner.
The visitors took the lead nine minutes later when Ireland tapped the ball home from close range, before the Reds equalised a minute after, Benayoun scoring at the back post from David N'Gog's deflected shot.
The result does not help either side's top-four ambitions and the Reds saw their Champions League preparations hit by a double injury blow to Daniel Agger and Ryan Babel.
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