Celtic produced one of the greatest moments in their long history to grab a European semi-final place for the first time in 29 years.

It was the moment Celtic had prayed for, the chance to show they were worthy and a match for anything in the Barclaycard Premiership, and Martin O'Neill's battlers did just that.

They won this pulsating 'Battle of Britain' with a hugely impressive display at Anfield and now march into the last four of the UEFA Cup.

A first-half free-kick from Alan Thompson and a late stunner by John Hartson did the damage to Liverpool, who had believed they had the edge on this tie after their 1-1 first leg draw in Glasgow.

Never as a manager has O'Neill lost at Anfield - but even he will accept that those battling displays by former club Leicester pale into insignificance compared to this display.

Celtic deserved their win. Liverpool failed to raise themselves to the level of physical and mental strength needed to finish the job they started at Parkhead.

Without the injured Chris Sutton there was a place in Celtic's engine room for skipper Paul Lambert, and it provided that extra dimension in terms of genuine midfield running and tackling.

Although Celtic were not able to mount the dramatic siege they produced in the opening minutes of last week's 1-1 draw they certainly troubled Liverpool early on, with Thompson, Henrik Larsson and Hartson all going close inside the first 20 minutes.

At the other end Vladimir Smicer - in for the suspended El Hadji Diouf - almost created a close range chance for Michael Owen, but Johan Mjallby, who was booked in the first minute for clattering the England striker, managed to clear.

Robert Douglas saved a 20-yard Steven Gerrard piledriver and close range Emile Heskey header, before the latter spun on an Owen cross and fired wide of the far post.

Celtic had the edge in the first period, passing and holding possession far better than they did in Glasgow last week and taking the game to Liverpool just as O'Neill had promised.

And Momo Sylla, despite a booking for powering into Riise, provided a far quicker, stronger and more direct down the right than Jamie Smith had in the first meeting.

When Celtic took the lead a minute into first half stoppage time, it was just about deserved.

Djimi Traore was judged to have held Larsson some 25 yards out and from the free-kick Thompson drilled the ball through the wall - Gerrard jumped and Smicer turned his back - and the shot flashed low just inside Dudek's left hand post.

Liverpool's second half response was predictable.

Gerrard almost equalised when he got onto the end of a Owen pass but could not force his chip past Douglas.

But they were still finding the fire and fight of Neil Lennon, Lambert's guile and Thompson's solid wing play a major obstacle.

The ineffective Smicer was soon replaced by Milan Baros, who was crowded out when given a good chance in the box by Murphy's touch.

The equaliser would not come, Celtic were a constant threat on the break and Reds boss Gerard Houllier was a frequent, worried observer on the touchline.

Thompson was booked for flattening Heskey and Douglas also got a yellow card for time-wasting - but the Scottish champions refused to buckle.

Lambert - after an outstanding industrious display - was replaced by Jackie McNamara before Dudek kept Liverpool in the game with a fine leaping save from a Larsson flicked header.

Liverpool had run out of ideas and failed to counter Celtic's physical control - and the home side were buried with nine minutes to go.

Hartson, who had plunged the depths of despair on Sunday when his missed penalty cost Celtic so dearly in the CIS Insurance Cup final against Rangers, made up for it all with a stunning, right-footed drive past Dudek.

Celtic fans all around the ground hailed a famous victory - and Scottish football could at last look England's Premier League in the face and smile.

Teams

Liverpool Dudek, Carragher, Traore, Hyypia, Riise, Murphy, Hamann, Gerrard, Smicer (Baros 56), Heskey, Owen.

Subs Not Used: Arphexad, Berger, Diao, Biscan, Cheyrou, Mellor.

Celtic Douglas, Mjallby, Balde, Valgaeren, Sylla (Smith 86), Lennon, Lambert (McNamara 73), Petrov, Thompson, Larsson, Hartson.

Subs Not Used: Marshall, Laursen, Maloney, Guppy, Crainey.

Booked: Mjallby, Sylla, Thompson, Douglas.

Goals: Thompson 45, Hartson 81.

Att: 44,238

Ref: Markus Merk (Germany).

Celtic won 3-1 on aggregate