The Reds squandered the chance to move nine points clear of defending Premier League champions Manchester City following their defeat at The Etihad.
Sergio Aguero broke the deadlock in the first half before Roberto Firmino levelled in the 64th minute to leave Liverpool FC close to securing a point.
However, Manchester City scored a late winner through Leroy Sane to ensure the title race remains competitive by reducing Liverpool FC’s lead to four points.
Liverpool FC will now reflect on their first Premier League loss of the season before the Reds take on Brighton at the Amex Stadium on Saturday 12 January.
The Merseyside outfit have never won the Premier League title despite finishing in second place under Gerard Houllier, Rafael Benitez and Brendan Rodgers in the past.
Klopp’s side are in a strong position but Liverpool FC will have to resist the challenge of a Manchester City team that won the title with a record points tally last term.
Former Manchester United defender Neville is believes Liverpool FC are in good position to win their first Premier League title and might not get a better chance.
“We’ve got two fantastic teams to watch, they are brilliant teams, absolutely brilliant. I think both are under real pressure for different reasons,” Neville told Sky Sports.
“A club like Liverpool, and the history it has got for winning titles, cannot go 25, 26, 27 years without winning, and this is an incredible chance.
“It’s not a now-or-never moment, because Liverpool will always have chances in the future, but you don’t know when your next chance is going to come, you don’t know whether Chelsea or Manchester United or
“Manchester City are going to be better next year. But this is a moment where Liverpool have to take it.
“For Pep Guardiola, he’s over here to dominate. He’s not over here to win one title in three.
“I think what you saw from him tonight was him demanding from his team: ‘Are you going to be a team that are a one-season wonder… the best team ever that can’t win back-to-back titles?’ He’s here to create a dynasty. So they are both under pressure for different reasons.
“We’ve got a title race to look forward to.”
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