Liverpool’s biggest chances came in the first half when Mohamed Salah had a 15th-minute penalty saved by Kasper Schmeichel and headed the rebound off the bar.

Sadio Mane then missed a couple of opportunities for Jurgen Klopp’s side before they were made to pay by the hosts in the 59th minute.

Former Everton forward Lookman, with only his fourth touch after coming on, took Kiernan Dewsbury-Hall’s pass in his stride, beat Joel Matip and rifled a shot past Alisson – Leicester’s only shot on target.

Leicester, missing several first-team players, hung on despite relentless late Liverpool pressure – just six days after blowing a 3-1 lead to lose on penalties against the same opposition in the Carabao Cup quarter-finals.

With only their second defeat of the season, Liverpool are now six points behind leaders Manchester City, while Leicester – who have won just two games out of seven – move up to ninth.

The Reds could also end 2021 in third place and nine points off top spot if Pep Guardiola’s City beat Brentford, and Chelsea at least draw with Brighton, on Wednesday.