Liverpool's U19s team suffered heartbreak on Tuesday afternoon after they lost 2-1 to Benfica in the last 16 of their UEFA Youth League tie.

A 74th-minute strike from Diogo Goncalves proved to be the difference between the two sides on a bright but blustery afternoon at the Caixa Futebol Campus.

Despite Liverpool making a confident start, it was the hosts who had the first real chance of the contest on four minutes. A neat exchange of passes led to a pin-point cross from the right by Gilson Costa, who found the head of Hildeberto Pereira, whose header flew agonisingly wide of Ryan Fulton's post.

However, just a minute later Pereira made no mistake as a through ball allowed the No.9 to charge past Dan Cleary and Joe Maguire, before firing past the onrushing Fulton into the top corner.

But the young Reds found an instant reply courtesy of their own Iberian starlet. Surging forward at will, Sergi Canos shrugged off the challenge of Joao Lima before drilling an effort across the face of goal and into the back of the net via the post.

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The frenetic nature of the game showed no sign of ending as barely 60 seconds later, a mishap at the back for Neil Critchley's side presented Pereira with an opportune chance to regain the lead but on this occasion he scuffed his effort wide.

On 20 minutes, the travellers almost took the lead as the Irish duo of Alex O'Hanlon and Cleary combined, with the latter heading his compatriot's cross narrowly wide.

Three minutes later, Liverpool survived a close shave when a neat flick by Goncalves bore Pereira through on goal once again before he appeared to be brought down by Fulton. However, replays suggested the referee correctly blew for a dive and showed the attacker a yellow card.

Opportunities continued to arrive and on 27 minutes Harry Wilson's deflected free-kick almost led to a goal but for the late reflexes of the Eagles' stopper, Andre Ferreira.

As the first half wore on it was fair to say that the tie became a war of attrition with the two sides exchanging possession at will.

In the second period, it was the home team who fired the first warning shot just two minutes in when Pereira cut in from the right, before his cross found Costa, whose header was superbly palmed away by a fully-stretched Fulton.

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The Reds then had a chance of their own on 52 minutes when Canos once again charged at the Benfica backline. His surging run took him down the right flank before a neat one-two inside the box with Cameron Brannagan presented Wilson with an opportunity at the near post, which was met with a fine save from Ferreira.

The next notable opening came 14 minutes later when some patient build-up by Benfica lead to Pereira teeing up Goncalo Rodrigues on the right hand side of the box before his drilled effort flew narrowly over the crossbar.

Slowly but surely, the young Reds were put under further pressure and with almost 20 minutes remaining Joao Carvalho attempted an ambitious lob from over 40 yards out after Fulton had rushed off his line to deal with a clearance. However, the effort was dealt with by Maguire, who cleared his lines.

Eventually Benfica regained the lead on 74 minutes when a lovely one-two by Goncalves and Rodrigues resulted in the former bursting into the box before firing home to send the crowd wild with joy.

Yet there was still time for the visitors to test the home outfit and three minutes later it was Canos once again. The Spaniard cut in from the left and jinxed through the defence before opting to test the 'keeper at his near post, which was saved by the outstretched legs of Ferreira.

Then in stoppage time, Critchley's charges forced a goalmouth scramble when replacements Tom Brewitt and then Adam Phillips were denied by the feet of Ferreira and with that their dreams of progressing to a quarter-final tie with Shakhtar Donetsk ended.

Although there will be plenty of disappointment at how their journey in this competition ended, there was no disgrace in losing to last season's runners-up and they can take plenty of heart from a campaign that saw memorable victories over Real Madrid and FC Basel.

Liverpool: Fulton, Whelan, Cleary, Maguire, Hart (Brewitt), Chirivella (Ejaria), O'Hanlon (Phillips), Brannagan, Canos, Sinclair, Wilson. Unused subs: Firth, Alexander-Arnold, Dhanda, Lewis.