Liverpool's title dreams are turning into a nightmare after they stumbled in front of their own disbelieving fans.

Michael Owen may well have scored his 20th club goal of the season, but had it not been for a last-ditch save from Jerzy Dudek to keep out a Chris Marsden header and the width of a post to stop a 25-yard spectacular drive from Anders Svensson, Southampton would have gone back to the south coast with all spoils.

Liverpool have now won just once in their last nine league games, while Manchester United - with eight successive league wins - are waiting for their faltering rivals with great expectation on Tuesday.

It could be a defining moment in Liverpool's season. They had things so easy at one stage when Owen netted in an early onslaught, but Southampton were given the chance to work their way back into the game with Kevin Davies scoring the second half equaliser.

Liverpool looked fearful with no spark or pace about them, and you must fear for them at Old Trafford playing like this.

Phil Thompson - without Gerard Houllier beside him - must wonder how to stop the rot.

Having lost so embarrassingly at St Mary's last week, Liverpool needed a confidence booster.

It did not come. Caretaker boss Thompson recalled Emile Heskey, who has now scored just one goal in his last 32 for club and country, leaving Nicolas Anelka on the bench.

Vladimir Smicer returned after a back injury for a place on the bench, and found himself in the fray after just 31 minutes following a worrying ankle injury for Steven Gerrard.

Liverpool set off like men possessed, but could not keep it up and scandalously let what had been a timid Saints side back into a game they could have been four down in early on.

After just two minutes, Liverpool were awarded a free-kick 20 yards out for a foul by Marsden on Owen, and when Patrik Berger curled in his shot, Paul Jones produced an outstanding save to claw the ball out from right under the angle.

A minute later, Sami Hyypia met a John Arne Riise free-kick from the left with a powerful downward header from eight yards, and again Jones somehow got his body in the way.

Jones was getting no help from the men in front of him, and had to produce another outstanding block with his legs when Heskey turned and wrestled his way past Claus Lundekvam before drilling a fierce shot that the Wales keeper got in the way of.

It could not go on like that, and after seven minutes Liverpool, not surprisingly, took the lead.

Dietmar Hamann's fierce, low cross was turned away again by Jones, but this time Owen stabbed home the loose ball.

Gordon Strachan, having started the match in the directors' box, was soon down on the line barking out orders, and it sparked Southampton into something like life, but not before Jones was forced to plunge to his right to halt a Gerrard drive.

Heskey, despite his long run without goals, could never be accused of letting his all-round support player suffer, and his strength and running power plus defensive work at corners, was commendable.

Southampton, without producing any serious danger, at least managed to work their way into the game.

Marsden and Svensson, plus the industry of Paul Telfer, won possession and forced Liverpool back, but Dudek only had one first half save to make, a comfortable stop from Davies.

But just when it was looking all to easy, Liverpool were caught cold a minute after the re-start.

A long ball down the middle from Wayne Bridge produced no reaction from Liverpool's back line, and Marsden chased after the ball and got himself a couple of yards clear before anyone moved a muscle.

He was half stopped by a recovering Hyypia, but the ball fell invitingly for Davies to fire home his first Premiership goal in 13 months, the last one being 28 games ago against Spurs.

More problems for Liverpool came when substitute Smicer limped off with a leg strain, Anelka coming on.

But there was a lethargy about Liverpool's play, they lacked co-ordination and inspiration. Only Anelka's pace on the left caused problems for Southampton.

He created a chance for Berger, but the Czech chose to pass to Heskey and the unsuspecting England man could only scoop the ball over.

That just underlined Liverpool's lack of spark and decisiveness. Gary McAllister came on for Murphy on 72 minutes, and just a minute later fired just wide with a volley.

But Saints looked far more likely to win it in a desperate final few minutes when Liverpool looked frozen with fear.

Dudek was forced into a fine save to tip over a Marsden header on 78 minutes.

It almost got worse for Liverpool when Svensson hit the far post from 25 yards, seven minutes from time, with Davies firing the rebound wide.

Teams:

Liverpool: Dudek, Carragher, Henchoz, Hyypia, Riise, Murphy (McAllister 72), Hamann, Gerrard (Smicer 33), Berger, Owen, Heskey, Smicer (Anelka 59).

Subs Not Used: Heggem, Arphexad.

Goals: Owen 8.

Southampton: Jones, Dodd, Lundekvam, Williams, Bridge, Svensson, Marsden, Telfer, Fernandes (Tessem 75), Davies, Pahars (Le Tissier 90).

Subs Not Used: Moss, Monk, Delgado.

Booked: Davies.

Goals: Davies 46.

Att: 43,710

Ref: N Barry (Scunthorpe).