Fernandinho broke the deadlock for Manuel Pellegrini’s side just after the interval when the Brazilian collected the ball inside the box and drilled low into the net.
The Blues were well worth our slender lead, and it appeared likely that one goal would be enough to win the historic trophy as the clocked ticked over into the final 10 minutes.
However, Philippe Coutinho equalised with seven minutes remaining – forcing extra-time.
Neither side could find a second goal in the 30 additional minutes, which meant a penalty shootout would decide who the League Cup would go to.
And when Fernandinho missed our opening penalty, Liverpool were handed an early advantage.
But the brilliance of Willy Caballero prevailed - saving Liverpool’s second, third and fourth spot-kick as City triumphed 3-1 in the spot kicks and lifted won the showpiece.
Watch the entire 90 minutes above with a CITY+ subscription.
CITY+
CITY+ is available via an annual subscription of £34.99 a year, saving you £24 on our monthly offering.
Choose monthly and pay £4.99 a month with the option to cancel anytime.
Official Cityzens and Season Ticket Members can subscribe annually for £30 a year, a saving of £29.