Liverpool have 49 points with Leicester on 39, Manchester City 32, Chelsea 29 and Sheffield United 25.
Arsenal move into fourth spot as they twice came from a goal down with 10 men to beat Aston Villa 3-2 while Manchester United suffer a dismal 2-0 defeat at high-flying West Ham United who finished the weekend fifth.
Stand-in goalkeeper Adrian was the hero as it was his save from Tammy Abraham allowed Liverpool to beat Chelsea 5-4 on penalties.
An early goal from Mohamed Salah and a late one from Divock Origi gave Liverpool a win over Tottenham Hotspur in all-English Champions League final
After the last-16 first leg ended goalless at Anfield, five-times European champions Liverpool took control in Munich, bossing the game to become the fourth English team into the last eight
In other games, Arsenal dented Chelsea’s increasingly fragile title pursuit with a 2-0 derby win while Manchester United continued their stirring revival under Ole Gunnar Solskjaer with a 2-1 victory over Brighton & Hove Albion.
Liverpool manager Juergen Klopp fielded a much-changed line-up, including two teenage debutants and the Merseysiders fell behind to a Raul Jimenez goal on the break in the 38th minute.
Salah has not scored in his last three Liverpool outings and some observers have suggested he looks short of full fitness and sharpness.
Liverpool sign Brazil's Alisson from Roma in a world record 72.5-million-euro deal, the biggest ever for a goalkeeper.
The football's hottest star will have to balance getting the best performance for Liverpool's epic clash against Real Madrid while fasting in the Muslim holy month of Ramadan.
Liverpool were 5-0 up, but two late goals by the visiting Italians have given them a glimmer of hope to stage another escape act when the return leg of the Champions League is played in the Italian capital.
Mohamed Salah, Alex Oxlade-Chamberlain and Sadio Mane score three first-half goals for Liverpool to sink Manchester City in the first leg of their Champions League quarter-final play-off at Anfield.
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