City's youngsters fell behind on 17 minutes as William Greenidge found Kai Corbett to score, but the visitors were level just moments before the break through Liam Loughlin's effort.
However, Leicester were behind again on the hour-mark, courtesy of Harrison Ashby's strike, although the Club's Under-18s believed they had snatched a point in the latter moments of the clash.
Shane Flynn levelled the score in the first minute of added time, but there was Ashby again to deny City a precious point, giving the Hammers a victory with keeps them in touch with leaders Fulham.
Meanwhile, the young Foxes remain fourth in the U18 Premier League South Division, however there is a nine-point gap to bridge between themselves and Chelsea, who have played two games fewer.
The third-placed Blues will be the hosts when Leicester travel to Cobham Training Centre next Saturday (12pm kick-off) before a home clash for City against Southampton on Saturday 21 March (12pm kick-off).
City: Bosworth (c); Sams, Barrett, Aisthorpe, Godsmark-Ford (Kutshitnza 32'); Loughlin, Flynn, Fitzhugh (Maswanhise 73'), Ewing, McAteer; Russ (Pennant 62')
Subs not used: Odunze, Marcal-Madivadua
Goals: Loughlin 45', Flynn 90+1'
All times GMT.
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