Borja Iglesias had given Espanyol the lead.
Espanyol were set to move two points clear of Barcelona on the back of Borja Iglesias’ 20th-minute strike, but with time running out Verde scored with a free-kick to earn a draw.
Iglesias’ strike – which found the top right-hand corner from outside the box – looked enough to settle a game in which both sides had plenty of chances but were guilty of wayward shooting.
Prior to Verde’s goal, Valladolid had got only one of their 14 shots on the target, which came just before half-time when Toni Villa hit a left-footed shot which Diego Lopez gathered low down to his right.
By that point, Espanyol had already squandered a couple of good chances to double their lead, with Mario Hermoso and Hernan Perez both going close with headers.
But Valladolid finished on top and snatched a point after Victor Sanchez brought down Ruben Alcaraz to concede a free-kick.
The result leaves Espanyol level on points with Barcelona before the leaders face Real Madrid in El Clasico on Sunday.