Premier League champions Arsenal have been knocked out of the EFL Cup after suffering a shock penalty shootout defeat to League Two side Fleetwood Town at Highbury Stadium on Tuesday night.

The Gunners lost 5-3 on penalties after the fourth-round encounter ended 1-1 in regulation time, with Fleetwood securing a historic victory to advance to the quarter-finals.

Fleetwood took a surprise lead in the 21st minute through Aaron Loupalo-Bi, who got the better of Arsenal defender Marli Salmon before beating goalkeeper Illan Meslier.

Arsenal responded five minutes into the second half when Viktor Gyokeres scored the equaliser, bringing Mikel Arteta's side back into the contest.

Despite enjoying spells of sustained pressure and creating opportunities to take the lead, the visitors were unable to find a second goal as Fleetwood defended resolutely.

Arsenal's hopes suffered another setback in the 85th minute when 16-year-old Max Dowman was shown a red card, leaving the Premier League champions to finish the match with ten men.

With neither side able to find a winner after 90 minutes and stoppage time, the match went straight to penalties, where Fleetwood held their nerve to secure a famous 5-3 shootout victory.

The encounter was also briefly interrupted in the first half after an unauthorised drone was spotted above the stadium, forcing officials to suspend play temporarily.

The result represents one of the biggest upsets of the competition, with Fleetwood, who were 18th in League Two before the match, eliminating a side sitting 84 places above them in the English football pyramid.

While Fleetwood celebrate their place in the EFL Cup quarter-finals, Arsenal will turn their attention back to the Premier League following a disappointing night in Lancashire.