The under-pressure Merseysiders took an early lead through David Ngog but the Frenchman was later involved in a scandal when appearing to dive over Lee Carsley's challenge to win a spot-kick.
Gerrard ignored the protests to find the net after City had taken a shock lead through Christian Benitez and Cameron Jerome.
Ngog opened the scoring after Joe Hart saved from the youngster and Dirk Kuyt as Rafa Benitez's side looked on course for an expected victory.
But Rafa's namesake, who wears 'Chucho' on his shirt, nodded in from close range despite looking borderline offside initially, and Jerome struck a belter over Pepe Reina to silence The Kop.
Gerrard, on for Albert Riera, headed against a post from a Glen Johnson cross before the controversial incident as Ngog went over inside the box on 71 minutes. England star Gerrard, not included in Fabio Capello's squad for the weekend friendly with Brazil, comfortably sent Hart the wrong way from 12 yards.
"We had so many chances and plenty of possession, at the end we can talk about the penalty - whether it was or was not - but we deserved to win because we had so many opportunities," said Reds boss Benitez.
"I was talking to him [Ngog] and he said maybe it wasn't a penalty but it was 74 per cent possession again in the first half and it is unbelievable.
"I was really surprised, we had clear chances and we were attacking all the time."
Carsley was fuming afterwards, telling ESPN: "I was absolutely nowhere near him. It's a joke.
"I knew I didn't touch him and I said to the referee to book me or send me off, it would have made me feel better.
"I'm sure he has got a family, well if I went home having done that I'd be embarrassed.
"You're supposed to be teaching your kids an example and that is just an embarrassing case of cheating.
"But the lad's taken a chance and got his team a point so I'm sure they'll be patting him on the back."
Alex McLeish could only agree with his midfielder and point the finger at Ngog.
"This is a shame for the game," the Blues boss complained.
"He conned the referee and got his team a penalty. Peter Walton is a good referee but he got that one wrong. If it hadn't been for the penalty, I thought we'd have gone on to win it."
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This article has 2 comments
Poor KOP. Forget the premeirship. You needed to cheat the ref to get a point at Birmigham. What a shame...
By Kennedy Nyongesa Wamalwa.. Posted November 10 2009 at 7:38 AM.
Rafa has surely made the reds the laughing stock of the entire premiership. The team has now been reduced to scoring goals through dubious decisions. As a life long overseas supporter of liverpool fc, it grieves me to see the depths the team, which used to make the old first division championship its birthright, has fallen under rafa. I am also disgusted with the blind loyalty the kops are still showing rafa. Don't they understand that the problems facing the team are caused not only by the american owners but also rafa's absymal management style as well poor player purchases. The great Shankly, paisley and bob fagan must be turning in their graves now, seeing the performances of the current apology of a liverpool team (with the exception of gerrard, torres, reina, johnson and benayoun), which is about the worst ever produced in the last 30 years.
RAFA OUT, Either of MOURINHO/MANCINI/O'NEIL IN
By theophille.. Posted November 10 2009 at 8:05 AM.