A solitary first-half goal from Layton Stewart proved the difference between the two sides at LCFC Training Ground, as City fell to a second successive defeat in Premier League 2 Division 1.
Playing for the first time since hosting Brighton & Hove Albion Under-21s at the start of the month, coach Ben Petty made three changes to the team.
Bringing Tom Wilson-Brown in for Shane Flynn at left-back and midfielder Brandon Cover in for Oliver Ewing to make their first PL2 starts, Kian Pennant was also introduced to the starting XI, replacing Wanya Marcal-Madivadua.
The Reds featured summer signing Arthur Melo from the off in Seagrave, with further first team involvement coming in the shape of Fabio Carvalho and Nat Phillips, who both started.
The visitors found the breakthrough on 33 minutes when Luke Chambers set up Stewart to finish. The forward was handed the opportunity to double his tally with a quarter of an hour to play but sent his spot-kick wide, though that miss did not alter the end result.
The young Foxes slip to ninth in the PL2 standings, with seven points from their opening six games in the division. Liverpool, meanwhile, move above Leicester and into sixth.
Next up after the international break, City travel to the capital to face Chelsea Under-21s at Kingsmeadow on Saturday 1 October (12pm BST kick-off).
The details...
City: Odunze; Wormleighton (Hughes 72’), Appiah, Brunt (c), Wilson-Brown; Braybrooke, Cover (Popov 66’); K. Pennant (T. Pennant 72’), Alves (Cartwright 66’), McAteer; Maswanhise.
Sub not used: Doherty.