Souness also excused Steven Gerrard of any blame for letting the destiny of the title slip out of their hands in the final three games.
"Gerrard should be devastated because Liverpool were in the box seat and had their destiny in their own hands – but he shouldn’t be disappointed with himself as he has carried that team for many years," Souness told Sky Sports.
"He has been a worldly and one of the greatest Liverpool players in history – and his slip against Chelsea was not the reason Manchester City won the Premier League, it was letting in goals."
Gerrard admitted he was "absolutely devastated" after missing out on the chance to get his hands on the title.
"I’m absolutely devastated," Gerrard told Sky Sports. "Personally gutted and gutted for the fans. They’ve been magnificent but we can’t be too down because it’s been a fantastic season and we need to bounce back for next year and try and go one better."
"It took me until I’m 33 to get the experience of a proper title race so the experience for these young lads is going to be vital and there is a lot of ability in the squad. It’s growing and it’s moving forward and hopefully we can keep improving it."