The visitors arrived on a seven-match winning run across all competitions and dominated the opening exchanges, forcing Liverpool goalkeeper Khiara Keating into an early save.
However, Liverpool took the lead in the 19th minute when Beata Olsson converted a penalty after Jenna Clark's shirt was pulled by María Pilar León inside the box.
The lead lasted just three minutes. Keating's poor pass went straight to Freya Godfrey, who made no mistake in bringing the Lionesses level.
Liverpool responded with chances of their own. Olsson tested Elene Lete Para from distance, while Vivien Endemann was denied after a fine pass from Natalia Ramos.
But another defensive mistake proved costly just before half-time. Alejandra Bernabé's attempted header back to Keating fell short, allowing Kadidiatou Diani to tap into an empty net and give London City a 2–1 lead.
Liverpool enjoyed more possession after the break but struggled to break down the visitors' organised defence.
Ramos tested Para from the edge of the box, while Cornelia Kapocs saw a cross strike the crossbar as the Reds searched for an equaliser.
The Lionesses appeared to be heading for an eighth straight victory, but Liverpool had other ideas.
In the second minute of stoppage time, a late own goal from Valence brought the Reds level, sparking celebrations among the home supporters.
The result extended Liverpool's winless run in the league, but the late comeback ensured they avoided defeat against an in-form London City side.
Goalscorers
Liverpool: Beata Olsson (19' pen), Valence (90+2' OG)
Lionesses: Freya Godfrey (22'), Kadidiatou Diani (45')
Yellow Cards 🟨
Liverpool: Mao Itamura (90+3')
Lionesses: Danielle van de Donk (18'), Jana Fernández (69')
