Shortly before the Reds took the lead through Fabinho, the ball appeared to strike Trent Alexander-Arnold’s arm, but Oliver waved on play.
Mohamed Salah and Sadio Mane scored further, as Liverpool extended their lead at the top of the table.
Clattenburg told SportsMail: “VAR and Michael Oliver made the correct call in allowing Fabinho’s early goal to stand, although I disagree with the reasoning the Premier League have provided.
“There were strong suggestions at the time that the effort should be disallowed and a penalty awarded to Manchester City because Trent Alexander-Arnold had handled at the other end moments before the goal.
“However, it is the arm of Manchester City forward Bernardo Silva that deflects the ball onto Alexander-Arnold and that is why, for me, play should not be brought back.
“If Silva’s arm does not divert the ball, then yes, I believe a penalty should have been awarded as Alexander-Arnold’s arm is in an unnatural position and he is using it to make himself bigger.”
