The young Reds claimed six points from their three fixtures in Group A, with victories over Newcastle United and PSV Eindhoven and a defeat by Sparta Prague.
Newcastle’s 3-1 win against PSV on Wednesday night drew them level on points with Neil Critchley’s side, who nevertheless top the table by virtue of a superior goal difference.
Liverpool U23s therefore progress to the tournament’s quarter-finals alongside fellow group winners Sunderland, Dinamo Zagreb, Manchester United, Arsenal and Villarreal.
The two best runners-up, which are still to be determined this week, will join that half-dozen when the knockout stages get under way later this year.