The League Managers Association named the manager of the year.
The Sir Alex Ferguson trophy is voted for by the full membership of managers across all divisions.
Despite missing out on the title by a point to Manchester City, he won the FA Cup and League Cup this season.
The Reds will play Real Madrid in the final of the competition on Saturday.
The German, 54, said that it was a great honor and that it was not the best outcome for them.
When you win a prize like this, you are either a genius or you have the best coaching staff in the world, and I am here with all of my coaching staff, they know how much I appreciate them.
Kath was a receptionist at Manchester United for more than 50 years.
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