The Reds, captained by John Barnes, beat Everton 5-1 in their opening game thanks to four goals from Paul Walsh and another from Patrik Berger. They beat Blackpool 2-1 next with goals from Bjorn Tore Kvarme and former youth player Andy Roscoe to top Group A.
The Reds, also featuring Stephane Henchoz and Paul Jones, met Bolton in the final. Kvarme scored twice, Berger scored twice and Walsh rounded things off as Liverpool won 5-1.
Barnes's team now progress to the Grand Final in London this September.