Gary McAllister returned to Highfield Road to drive another nail into Coventry City's relegation coffin and keep Liverpool on course for a Champions League spot.

McAllister, who spent four years with City, created the 83rd minute opener for Sami Hyypia and then two minutes later drilled home a 30 yard free-kick past the despairing dive of Coventry goalkeeper Chris Kirkland.

Liverpool reduced the gap between themselves and Ipswich and Leeds to three points at the start of a demanding run of seven matches in 21 matches.

But for Coventry they are now holding onto life in the top flight by a slender thread and their unbroken 34-year run among football's elite could be over.

Coventry manager Gordon Strachan had been critical of his side's performance at Ipswich last weekend but he could have asked for no more from his side against the Reds.

If they were living in fear of relegation it certainly did not show in their play and the Sky Blues were a match for their treble-chasing opponents for most of the game.

They created as many opportunities as the Merseysiders and would have reaped greater rewards had they showed more composure in front of goal with John Eustace squandering a couple of gilt-edged chances.

But Liverpool always had aces up their sleeve to play despite not being at their most fluent and this time it was McAllister who came up with the goods to break Coventry's hearts.

The introduction of Michael Owen turned the game and only the brilliance of Kirkland denied him a hat-trick in the final half-hour.

Liverpool almost went ahead after four minutes when a corner from McAllister picked out Hyypia whose goal-bound effort was cleared off the line by Coventry defender Barry Quinn.

But the Sky Blues were soon causing problems to the Reds and defender Paul Williams found himself with only Sander Westerveld to beat after a one-two with Youssef Chippo but the Liverpool keeper deflected his effort wide.

Coventry were playing with a higher degree of composure than normally associated with sides battling to avoid the drop and John Eustace missed a golden chance to break the deadlock.

A corner by Paul Telfer was flicked on by John Hartson and the onrushing Eustace looked to have the goal at his mercy but he sent his header over the top.

Eustace then had another good opportunity after another Hartson knock-on had only been half cleared but he drilled his low shot from 15 yards out past the post.

Liverpool were nearly given a helping hand by Lady Luck when a misdirected shot from Markus Babbel hit Robbie Fowler and flew goalwards but fortunately for the home side his effort was just too high.

Liverpool started to come more into the game and Fowler missed their best chance of the opening 45 minutes just before the interval.

A McAllister corner was headed goalwards by Hyypia and Fowler closed in for the kill less than six yards out but his header flew over the bar.

Liverpool started the second half on the offensive and Heskey was only just off target with a rising 30-yard effort.

But Coventry continued to pose questions of the visitors and Hadji's trickery took him past Hyypia only for Stephane Henchoz to make a vital interception as he prepared to shoot.

Liverpool's frustration at being unable to find a way through boiled over when Heskey was yellow-carded for showing dissent towards a referee's assistant.

Fowler was struggling to make much impression and on the one occasion he found space in the penalty area he then delivered a weak chip into the hands of Kirkland.

That was his last contribution before he was replaced by Michael Owen while Coventry brought on Ysrael Zuniga in place of Craig Bellamy.

Zuniga almost made an instant impact as Westerveld clung onto his close-range shot after Hartson had flicked on a Telfer cross.

Breen then almost made himself a hero when he got on the end of a Telfer corner but he sent his close range effort just past the post.

Owen was troubling the City defence with his pace and in the 76th minute he was only denied by a vital save from Kirkland.

Heskey sent Owen racing clear of the defence but Kirkland stood his ground and managed to parry Owen's chip around the post.

But with seven minutes Hyypia finally broke the deadlock when he headed in at the far post from a McAllister corner.

That came immediately after Liverpool appealed in vain for a penalty when Williams appeared to handle a goal-bound Owen effort.

Then with five minutes left McAllister delivered the knockout punch with another superb free-kick which even the inspirational Kirkland was powerless to keep out.

Teams

Coventry: Kirkland, Quinn, Hall, Williams, Breen, Hadji, Telfer, Eustace, Chippo, Bellamy (Zuniga 64), Hartson.

Subs Not Used: Hedman, Edworthy, Guerrero, Strachan.

Booked: Breen, Quinn, Williams.

Liverpool: Westerveld, Babbel, Hyypia, Henchoz, Carragher, Murphy, McAllister, Hamann, Berger (Ziege 74), Heskey (Biscan 86), Fowler (Owen 62).

Subs Not Used: Arphexad, Wright.

Booked: Heskey.

Goals: Hyypia 83, McAllister 86.

Att: 23,063

Ref: S Bennett (Kent).