Liverpool boss Jurgen Klopp has conceded that his side will not be able to retain the Premier League title this season.
Manchester City are 10 points ahead of last season's champions, with Pep Guardiola's men also boasting a game-in hand.
Liverpool took the lead on 67 minutes against Leicester City through Mohamed Salah, but James Maddison levelled the game not long after.
Then Klopp 's side fell apart, after another mistake from goalkeeper Alisson allowed Jamie Vardy to put the Foxes ahead before Harvey Barnes wrapped up proceedings with a neat finish.
Leicester have now moved above Manchester United into second-place, with Brendan Rodgers' side now four points below City.
It's Liverpool's third defeat in a row, after losses to Brighton and Manchester City at Anfield before continuing their poor form on Saturday afternoon against the high-flying Foxes.
Speaking after the game at the King Power Stadium, the German appeared emotional when he was asked if he is conceding the Premier League title, Klopp replied: "Yes... I can't believe it, but yes."
City have the opportunity to extend their advantage over Liverpool to 13 points this evening as they take on Tottenham Hotspur at the Etihad Stadium.
If that is the case, then Guardiola's side could go as much as 16 points clear, if they can win their game in-hand on their rivals.
Manchester United make the trip down to the Midlands tomorrow afternoon to face struggling West Bromwich Albion as they look to keep the pressure on their neighbours.
