GUTTED; LYON 1 LIVERPOOL 1.

Byline: DAVID MADDOCK

LIVERPOOL'S European hopes hang by a thread after they had victory snatched away from them in the cruellest manner last night.

Just as it seemed substitute Ryan Babel had resurrected his side's Champions League campaign Lyon denied them victory with an injury-time equaliser from Lisandro Lopez.

That makes progress to the knockout stages almost impossible - although manager Rafa Benitez refused to throw in the towel. "It's not impossible. We have to win the next game and hope Lyon beat Fiorentina," said the Anfield boss.

Were that to happen, Liverpool would then have to beat Fiorentina in their last match at Anfield to go through.

Benitez added: "To concede like that was really unlucky. But I was pleased with the positive response of our players."

Liverpool again showed their defensive frailty by conceding a farcical goal in the dying seconds when they exposed a lack of belief in their ability to see the job out. But they will complain bitterly that Lyon striker Bastos was in an offside position when he set the goal up.

They must hope Lyon go to Fiorentina and win there in the next round of matches, even though they have already qualified and will be tempted to field a weakened team.

Last night. they only had to hold out for seven minutes after Babel's spectacular strike but failed. And they also spurned several chances before that to take the lead, but Andriy Voronin, Lucas and Dirk Kuyt all wasted good opportunities.

Now Rafa's walking alone

Report: Pages 50 & 51

CAPTION(S):

CHOKED Rafa Benitez's Euro dreams were in tatters last night FERNAN-DOH For the second game running Fernando Torres limped off the pitch.. and it cost Liverpool the game