The former Everton star, who has been out of action since aggravating an ankle injury in the FA Cup semi-final win over Wycombe Wanderers, successfully came through the full ninety minutes in the 2-2 draw with Manchester United's second string on Monday afternoon.
The England international has now put himself in firm contention to win a place in the squad for this Saturday's FA Cup final with Arsenal and the Uefa Cup final against Alaves the following Wednesday.
Finnish forward Jari Litmanen also continued his return to fitness by playing the entire game and he is pushing for a place in the squad for both finals.
The only sour note for Houllier was the absence of captain Jamie Reknapp, who was expected to play in the game to continue his battle to regain fitness from a long-term knee injury, but was forced to pull out with a groin strain.
The injury is not thought to be serious, but it will probably mean Redknapp will have to wait until next season before making his return for the first team.
