Murphy's law rules
The England international narrowly won the poll ahead of club and international colleagues, Steven Gerrard and Michael Owen.
Murphy had a solid season for The Reds and proved to be an ultra-consistent performer as Gerard Houllier's troops missed out on a Champions League berth.
The former Crewe Alexandra ace collected 24 percent of the votes and was the leading member of the Liverpool troika which recorded more than 3,000 votes each.
With 24 percent, Murphy shaded the vote by 1 percent from Gerrard, who was just 153 votes behind his Reds team-mate.
Key striker Owen was a further 1 percent back in third spot in one of the tightest polls witnessed for a Player of the Year crown.
The remaining triumvirate in the poll - Sami Hyypia, Milan Baros and John Arne Riise - all received a respectable number of votes from our readers.
1. Danny Murphy 24%
2. Steven Gerrard 23%
3. Michael Owen 22%
4. Sami Hyypia 13%
5. Milan Baros 10%
6. John Arne Riise 8%
The final list of 20 star men is now taking shape with half of the field known. Thierry Henry, Gareth Barry, Christophe Dugarry, Brad Friedel, Jay-Jay Okocha, Scott Parker, Gianfranco Zola, Steed Malbranque, Harry Kewell and now Murphy all through to the final poll.