Danny Simpson was handed a first start of the season at right-back, while goalkeeper Danny Ward continued his Carabao Cup involvement following his shootout exploits in the previous round against Wolverhampton Wanderers.
Despite midfielder Adrien Silva stabbing an effort on goal inside the opening 60 seconds, goalscoring opportunities were at a premium throughout the 90 minutes.
Silva’s long-range effort on 20 minutes was then easily saved by stopper Angus Gunn, while Ward was on hand to smother Michael Obafemi’s shot just moments later.
On the stroke of half-time, Jamie Vardy got in behind the Southampton backline and his cross to Gray was nearly turned into the back of his own net by central defender Jannick Vestergaard.
City were awarded a huge let off on 63 minutes. Nathan Redmond struck the underside of Ward’s crossbar and Obafemi side-footed the rebound wide in front of an open goal.
Half-chances for Fousseni Diabaté, Okazaki and Gray came as the game began to gather pace, while on 84 minutes, substitute Steven Davis found the back of the net. However, after a VAR decision, the Saints midfielder’s effort was ruled out for handball.
City also had VAR review of their own when Evans appeared to be fouled in the Southampton box, but there was nothing given.
Deep into stoppage time, with penalties looming, Ward had to pull off a brilliant stop to tip Manolo Gabbiadini’s free-kick onto the crossbar, as Southampton nearly snatched victory with seconds to go.
Having saved three penalties in the third round against Wolves, all eyes were on Ward in the shootout – and rightly so.
After Christian Fuchs, Marc Albrighton, Çağlar Söyüncü, Gray and Vardy all converted for City, while Davis, Pierre-Emile Hojbjerg, Redmond, Vestergaard and Cedric Soares were all on target for Southampton.
Gabbiadini – brought on with a minute to play – was Southampton’s sixth penalty taker, but he would not be their sixth scorer, as a full-stretch Ward brilliantly palmed the Italian’s effort to safety.
That provided Mendy with the opportunity to book City a Carabao Cup Quarter-Finals spot, and the Frenchman did exactly that, sending Gunn the wrong way to win it for the hosts.
Danny Ward tips Manolo Gabbiadini's free-kick onto the crossbar in injury time.
While Danny Ward once again excelled in a penalty shootout for the Foxes, his save in injury time to deny Manolo Gabbiadini was crucial in ensuring his side would not concede late on at King Power Stadium.
The Wales international is now yet to concede in 270 minutes of Carabao Cup action for Leicester City – a welcome statistic with current holders Manchester City next up in the quarter-finals.
Danny Ward pulled off a fine stop in injury time before denying Manolo Gabbiadini from the spot.
It is hard to look past Danny Ward as one of City’s most outstanding players on the night, as he continues to show his quality following his arrival from Premier League rivals Liverpool this summer.
An expert at penalty kicks, the 25-year-old was once again City’s hero on Tuesday night in front of a King Power Stadium crowd eager to see the Club’s stars benefit from a lengthy run in the Carabao Cup.
Where do we stand?
Jamie Vardy scored his side's fifth penalty during the shootout against Southampton.
Leicester City’s triumph on penalties sees them set up a second Carabao Cup Quarter-Final tie with Manchester City in as many seasons.
The fixture against Pep Guardiola’s men will take place on Tuesday 18 December (7:45pm GMT kick-off) at King Power Stadium.
Leicester City celebrate their shootout victory after Papy Mendy converted their sixth penalty of the evening.
Claude Puel’s outfit continue their 2018/19 Premier League campaign on Saturday when Watford visit Filbert Way (3pm GMT kick-off), before a trip to Craven Cottage to face Fulham follows four days later (7:45pm GMT kick-off).
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