The north west rivals drew 1-1 at Anfield on Saturday after Javier Hernandez's late header cancelled out Steven Gerrard's second-half free-kickGreg Stobart at Anfield
Kenny Dalglish believes the disappointment of the Liverpool players after Saturday's 1-1 draw with Manchester United shows how much the team has developed under his management.
Javier Hernandez's 81st minute header secured a draw for United at Anfield after Liverpool captain Steven Gerrard had given the hosts the lead with a free-kick in the 68th minute.
Liverpool created the better chances and applied late pressure as they tested United goalkeeper David de Gea, but they could not score a winner past the visitors' stubborn defence.
Dalglish took charge of Liverpool in January and he believes it is a sign of the improvement his side have made in recent months that the players were downbeat after being unable to seal victory over the Premier League champions.
Speaking at the post-match press conference, Dalglish said: “We could have had all three points after what I think it was pretty even and sterile beginning to the match.
“I think it's a real indication that the players were disappointed in the dressing room after the match about drawing with a team like Manchester United. That shows how far we have come.
"I saw in the press that de Gea has struggled, but he certainly didn't struggle today, he made a couple of fantastic saves."
Gerrard's goal marked his return to the Liverpool starting line-up after a troublesome groin injury and Dalglish was delighted to see his skipper get his name on the scoresheet.
“It's fantastic for Steven that he has crowned his first start for a while by scoring,” Dalglish said. “It's brilliant to see him back. Everyone is happy with how far we've come and wants to take it further. I'm sure Steven can help with that."
United manager Sir Alex Ferguson surprised many by naming Hernandez, Wayne Rooney, Nani and Anderson as substitutes in a defensively minded starting line-up.
Dalglish, however, interpreted his compatriot's team selection as a compliment to Liverpool and acknowledged rotation as a large part of modern management.
“Their team selection was not a surprise,” he added. “I think it was a compliment to us as well.
“Fergie always changes him team after an international break and they have got an important game on Tuesday. I've always said it's a squad effort and obviously Sir Alex thinks the same way.”