JURGEN KLOPP suffered his first Goodison Park defeat to put a huge dent in Liverpool's Premier League title hopes.
Jarrad Branthwaite and Dominic Calvert-Lewin scored in either half to move Everton one win from safety with four games to go.
But Klopp's Reds now face an unlikely chance of finishing his reign with a league title as they trail leaders Arsenal by three points.
Liverpool have been in talks with Feyenoord as they close in on appointing Arne Slot as Klopp's successor.
The 45-year-old Dutchman Slot is also of interest to Bayern Munich but the Reds made their move yesterday.
But last night Klopp was serenaded with 'You lost the league at Goodison Park' as Everton won their first derby at home since 2010.
Klopp said: "I can only apologise for today to the people. We should have done better but we didn't."
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