The Frenchman, who enjoyed a successful spell with the club between 1998 and 2004, was impressed with the new manager's decisions in the 2-2 draw with Everton, and felt his former team were unlucky not to win the Merseyside derby.
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"Liverpool posed a major problem to Everton in changing the system in the second half and I thought Brendan was very clever. It really helped the team and in the end they probably could have won it."
The 65-year-old led Liverpool to a domestic cup treble in 2001 during his spell at the club and added the European Super Cup to the trophy cabinet later that year before being replaced by Rafael Benitez in 2004.
Houllier was also happy with the youngsters coming through the ranks at his old club, claiming that they can develop into star names at Anfield.
"Raheem Sterling could be a major player," he continued.
"Suso, Andre Wisdom and Joe Allen are all good. The future looks bright."