The former Reds boss says the Fulham manager is the best candidate to succeed Benitez as Liverpool manager.
"Roy has done very well with an average team at Fulham," said Houllier.
"I would be delighted if he could coach Liverpool in his career as he deserves it. He’s used to coaching stars. Don't forget he was at Inter Milan as well.
"It's a big club and a big club will remain a big club. The quality of the players are still very good."