Liverpool suffered a dramatic 3-2 loss at French side Toulouse in Europa League Group E on Thursday after the English side had a potential equaliser ruled out in the final minute of added time.

The hosts broke the deadlock after 36 minutes when Aron Donnum intercepted the ball in midfield, broke into the box, and scored with a deflected shot before Thijs Dallinga doubled the advantage in the 58th minute.

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Liverpool pulled one back in the 73th minute through an own goal from Cristian Casseres, but Frank Magri restored the hosts' two-goal advantage three minutes later, slotting home a deflected cross from close range.

Diogo Jota gave the Premier League side hope when he dribbled into the box and placed the ball into the bottom corner.

Luis Diaz, whose father had been released by kidnappers earlier on Thursday, started the match for Liverpool but was replaced by Jota nine minutes from time after making little impact.

Liverpool thought they had salvaged a draw as Jarell Quansah found the net in the seventh minute of stoppage time, but the VAR disallowed it due to a handball by Alexis Mac Allister earlier in the move.

Liverpool remained top of Group E, two points ahead of Toulouse.