Guests on the liner could hear the live music at the Pier Head stage

The luxury liner arrived in the city amid choppy conditions at 0930 BST, docking near the Liver Building.

Guests of the QE2 can sample live music at the Pier Head and at stages in Castle Street, Water Street and The Strand, before leaving at 2130 BST.

Liverpool City Council say 150 bands from 20 countries will have performed at the free festival over the weekend.

Council leader Mike Storey, said: "''The Mathew Street Festival is known the world over for the diversity of its music and for the amazing crowds. It is unique in that it transforms a city centre into one big music stage for all generations to enjoy.

"'I'm delighted this top class event has expanded to capitalise on the benefits of our world heritage waterfront. As a music venue it has no equal.

"People are still talking about the success of the Summer Pops and with Creamfields just around the corner, this bank holiday weekend shows why Liverpool is the World Capital of Pop.''

This year's festival celebrates the sounds of Memphis, which twinned with Liverpool in 2004 to celebrate the 50th anniversary Elvis Presley's first record - ''That's All Right''.