MANCHESTER -- Steven Gerrard's Liverpool under-19s were knocked out of the UEFA Youth League quarterfinals on penalties by Manchester City on Wednesday.
City now play Barcelona in the semifinals of the youth tournament in Nyon, Switzerland, on April 20.
City goalkeeper Daniel Grimshaw saved two of Liverpool's penalties in a shootout after the game finished 1-1 after 90 minutes.
Curtis Jones put Liverpool ahead in the first half before Lukas Nmecha quickly equalised for the hosts.
It was Liverpool's second all-English tie in the UEFA Youth League after beating Nicky Butt's Manchester United in the round of 16 last month.
Their first shot on target led to the breakthrough when Jones, 17, finished off a rapid counter-attack in the 34th minute.
City, however, responded within six minutes as Nmecha's close-range free kick deflected in off Liverpool captain Ben Woodburn.
Both teams had chances in the second half but could not be separated after 90 minutes and the one-legged tie was settled via a shootout.
Grimshaw pulled off two saves in the shootout to deny Jones and Conor Masterson, and Herbie Kane hit the bar with Liverpool's fifth penalty.
Gerrard said he was proud of his team despite their exit.
"I'm gutted for the players because you could see what they were like at the end," he told reporters.
"In a strange way that lifts me because it shows that I've got players that care and players that really wanted this.
"I'm really proud, alongside Neil Critchley and the rest of the staff, of the journey that they've taken us on.
"It's a shame we've gone out on penalties because I had belief that, if we could have got over the line today, we could have gone all the way.
"That's the disappointing thing, but I'm not disappointed in what they gave today."
Gerrard said he had "really enjoyed" managing the team and added: "To have the chance to manage this team in the youth cup and domestically, but to also to get European experience in my first six or seven months of coaching, will do wonders for me.
"I've seen different styles and felt the pressure in certain situations. I think it will help me a lot.
"These [players] have had the chance to go to Seville, to go to Russia and play on a plastic pitch and then to come and fight against a very good Manchester City side with the chance to go and play Barcelona. Those experiences are only going to help you."