Jamie Carragher has urged Liverpool to simply "take their medicine" following their first Premier League defeat of the season.

The Reds were edged out 2-1 by title rivals Manchester City at the Etihad Stadium on Thursday.

Sergio Aguero gave the hosts the lead shortly before half-time, before Roberto Firmino equalised after the break.

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But Leroy Sane scored City's winner 18 minutes from time, as Pep Guardiola's side moved up to second place and cut the gap to the league leading Reds to four points.

But Carragher says Liverpool shouldn't panic.

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“I said a few weeks ago - I think it was probably six to eight weeks ago - Liverpool drew away at Arsenal and it felt like a defeat, listening to Liverpool supporters," he told Sky Sports.

"I think that maybe put City two points clear and the feeling was that if you let City get away from you, you're never going to catch them.

“You think away at Arsenal, a draw is a good result. A defeat anyway is never a good result so losing here, going into this game the talk was 'Liverpool can go ten points clear'.

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"A lot of the talk was about Liverpool. I think the talk in the press over the next few days will be about Man City. 'Man City are back in the race, are they now favourites to win the league?'

“Liverpool need to just take their medicine, just relax. Calm down, play the FA Cup game whatever happens, whatever team he picks. But then it's Brighton Liverpool play next. Four points clear is still a really good position to be in.

“And the form they've shown against sides outside the top six - they've got all those games coming. Liverpool just need to relax, get some wins under their belt and maybe improve that lead if they can over the next month to six weeks.

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“But they're in a fantastic position and what happened to City when they lost to Chelsea was they went on that little run of losing three in four. And that's what's put Liverpool in the position they are.

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"It made Tottenham come closer. Liverpool just need to make sure they don't go into a little run of games. Just put this one to bed and then move onto the next one.”