Scott Rogers’ side travelled to the Academy Stadium with hopes of booking a trip to Wembley by overcoming the reigning Women’s Super League champions on their own turf.
Kate Longhurst saw a cross strike the woodwork in the opening minutes of the tie but the Reds were undone by a single City goal in the 57th minute, Melissa Lawley finding the target from range with what proved to be the winner for the hosts.
The Ladies’ focus will now turn to the beginning of the Spring Series, with a trip to Yeovil Town Ladies first on their fixture schedule this Sunday afternoon.
Liverpool Ladies: Chamberlain, Hodson, Bonner, Stoney, Greenwood, Ingle, Longhurst, Zelem, Charles, Harding, Van de Sanden. Substitutes: Gibbons, Weir, Johnson, Rodgers, Taylor.