Two goals from Michael Owen - taking his season's tally to 16 - helped the Merseyside club to a 4-0 win over Blackburn as Aston Villa could only struggle to a 1-1 draw at Villa Park.
Today's success moves Liverpool back into fourth place, with Newcastle now seen as the major obstacle to Champions League qualification a point behind in fifth.
Birmingham City now stand three points adrift in sixth, with Aston Villa now a crucial five points behind the all-important fourth and final Champions League spot.