A magnificent late winner from Emile Heskey put Liverpool within touching distance of the Premiership runners-up spot.

England boss Sven-Goran Eriksson witnessed a marvellous seven-goal thriller at Anfield littered with spectacular goals and drama.

Three times Blackburn fought back to equalise but Liverpool dug deep to claim a victory that was made all the sweeter by Arsenal's championship-clinching win over Manchester United which allowed them to go second.

Liverpool know now that if they beat Ipswich at Anfield at the weekend they will clinch second place and consign United to the Champions League qualifying round.

But the Reds had to fight every inch against their old boss Graeme Souness' side. Blackburn will feel they did not deserve to lose after playing such a marvellous part in a compelling game.

But they could not subdue Liverpool's spirit, and the Anfield men now stand on the brink of their best-ever Premiership finish.

Gerard Houllier opted to play all three of his strikers, Michael Owen, Nicolas Anelka and Emile Heskey, with the big England front man taking up a right flank role.

Blackburn, who had won entry into Europe and dragged themselves away from the relegation zone, had Alan Kelly in for Brad Friedel, who is already on USA World Cup duty.

Eriksson chose Anfield rather than Old Trafford, clearly to run the rule over Blackburn striker Matt Jansen, as well as Liverpool's hopefuls Danny Murphy and Jamie Carragher before the announcement of his World Cup squad.

Murphy seemed inspired by the presence of Eriksson, and hurled himself into everything, getting a kick in the face inside 30 seconds from Lucas Neill that needed several minutes of treatment.

But it did not curtail Murphy's running, tackling and desire. News of Eriksson's arrival had travelled fast.

Carragher wanted to get in on the act with several impressive right flank runs. The England certainties, Owen, Heskey and Gerrard were just as involved, working triangles of neat interplay.

Jansen, up against the formidable Sami Hyypia and Stephane Henchoz, never stopped moving in search of space, equally sharp and inventive.

And he almost scored on 20 minutes when he took a pass from Andy Cole and managed to twist and wrong-foot both of his markers to find the space to drive a shot just over the angle.

But two minutes later Murphy went one better with a goal that underlined his guts and determination.

John Arne Riise fired in a cross from the left and Murphy won possession but fell in the effort. Yet as he lay on the ground he had the foresight to hook the ball past a shocked Kelly.

Rovers quickly responded as Damien Duff cut in at high speed from the left, played a double one-two with first Nils-Eric Johansson and then Tugay - leaving Heskey a bemused by-stander - before drilling the ball past Jerzy Dudek's flaying right hand for the equaliser.

But Murphy could not be stopped. When Gerrard's dangerous cross curled into the area, Murphy flung himself bravely into the six-yard box and sent the ball bouncing inches over the bar while colliding with Kelly and Craig Short.

Eriksson was also seeing Owen playing in the withdrawn role he has occupied of late for Liverpool, and one run and shot was inches wide with Kelly a spectator.

Andy Cole should have put Rovers ahead but he attempted a flicked shot that Dudek held at full stretch before Anelka grabbed the next goal at the other end.

Riise charged down the left and squared the ball to the Frenchman who then sped away from Craig Short to guide the ball wide of Kelly. Anfield was being treated to the most entertaining match in months, and Gerrard, Riise and Anelka could all have increased the lead.

But Blackburn, playing their full part, hauled themselves level on 49 minutes. Neill's cross was met by a leaping Cole in the six-yard box. The power of his header surprised Dudek, who could only palm up the point-blank effort, the ball dropping into the net.

But two minutes later Liverpool were ahead again. Murphy's jinking run down the left ended with him being brought down by Neill. Murphy took the free-kick himself, curling a right footer into the box for Hyypia to power above everybody and glance a header wide of Kelly.

News of Arsenal's goal at Old Trafford went round the crowd like wildfire, and Riise from 30 yards, plus Anelka with a close-range stab just wide, could have extended the lead.

But Rovers, to their immense credit, refused to buckle. David Dunn, Jansen, twice - Henning Berg and substitute Keith Gillespie could all have scored.

Rovers had Liverpool reeling by now, and Jansen arrived on the far post with 11 minutes left to drill home Gillespie's low cross for the equaliser.

Two minutes later Eriksson left, with plenty to dwell on during his trip back to London.

Sadly Eriksson missed Heskey's cracker with five minutes left. The big striker took Carragher's pass and powered across the face of the box to spin and smash a superb shot into the far corner.

Liverpool hung on to claim victory, with word of United's defeat being instantly relayed to a delighted Anfield crowd.

Teams

Liverpool: Dudek, Carragher, Henchoz, Hyypia, Riise, Murphy, Gerrard, Hamann (Xavier 81), Heskey, Anelka, Owen (Smicer 90).

Subs Not Used: Arphexad, Barmby, McAllister.

Booked: Gerrard.

Goals: Murphy 23, Anelka 39, Hyypia 52, Heskey 86.

Blackburn: Kelly, Curtis (Gillespie 60), Berg (Hughes 90), Short, Neill, Dunn, Tugay, Johansson, Duff, Cole, Jansen.

Subs Not Used: Yordi, Unsal, Miller.

Booked: Duff.

Goals: Duff 28, Cole 49, Jansen 80.

Att: 40,663

Ref: A Wiley (Burntwood).