Kasey Anderson, 24, from Croxteth, had been critically ill in hospital following the incident on Carr Lane East on Saturday 12 March.
A post mortem will be carried out to confirm the cause of death.
Natalie Bennett, 46, of Carr Lane East, had previously been charged with Section 18 wounding and remains in custody at this time.
A man and a woman also arrested in connection with the incident remain on conditional bail pending further enquiries.
Detective Inspector Ben Wayment said: “Specialist officers are supporting Kasey’s family in this difficult time, and we continue to ask for anyone with information to come forward if you are yet to do so.
Anyone with information is asked to DM Merseyside Police Contact Centre, call 101, or Crimestoppers on 0800 555 111 quoting reference 23000208420.
