The news, coupled with an injury to defender Jamie Carragher, will be of great concern to Houllier but the Frenchman refused to blame Anfield employee Babbel for the unfortunate incident.
Houllier said: "Milan has a broken ankle and will undergo an operation tonight or tomorrow. It is a bad injury but I do not blame Markus. It was not even a foul, he tackled properly and won the ball. Milan injured his ankle when he fell. I saw Markus after the game and he was distraught."
The Reds boss also revealed that the club do not yet know the extent of the injury suffered by Jamie Carragher.
Houllier added: "We're not sure just how serious that is yet. He'll need a scan before we know anything more. It was a bad tackle though. It oculd have broken his leg. I can tell you that Jamie Carragher would not come off the pitch unless he couldn't walk and when he came off he was unable to put his foot down.
"It was a two-footed tackle. Neill deserved to be sent off and I think he'll even admit that himself when he sees the incident on television."
How will we cope without Baros?