The Reds manager enjoyed a brilliant season in the Anfield hotseat, guiding the Merseyside team to second in the League with Luis Suarez and Co in the title race until the final day of the season before being pipped by Manchester City.
England boss Roy Hodgson was on hand to present the 41-year-old with the award which is voted for by every manager across all four divisions.
Upon receiving the award, having narrowly missed out on the League title, Rodgers joked: ‘I was hoping id been on the open top bus tonight.’
Rodgers, from Northern Ireland, saw Liverpool qualify for the Champions League this term having finished seventh last season.
LMA chairman Howard Wilkinson said: ”There can be no greater tribute to a manager and his work than a tribute awarded by his match day foes and peers. This evening we applaud Brendan Rodgers as he receives that most valuable award.
‘Liverpool Football Club’s performances and results this season have provoked memories of some of those momentous years in the past when they had to contend with those two United’s, the first from Leeds, the second from Manchester.
‘For Liverpool and Brendan, I’m sure we all hope this season marks the beginning of a new voyage and a new era.’
Meanwhile Crystal Palace boss Tony Pulis scooped the Barclays Premier League Manager of the Year after pulling off a ‘miracle’ to keep the Eagles in the top-flight.
The Selhurst Park manager masterminded the club’s incredible escape from relegation after taking over when they only had four points in the Barclays Premier League.
Palace, who were promoted last season via the play-offs, have an annual wage bill of £31m. Premier League champions Manchester City paid £233m a year in salaries in their last set of accounts.
The LMA award is based on the resources available to each manager and is voted for by its members.
Burnley boss Sean Dyche and Everton manager Roberto Martinez were the other two names on the shortlist.
Surprisingly, Manuel Pellegrini wasn’t nominated despite guiding Manchester City to the Premier League title during his first season in England.