Town’s U18s, who will face Sheffield United in their FA Youth Cup quarter-final at Portman Road on Friday evening, were beaten 4-2 at Birmingham City in Professional Development League Two South this afternoon.
Alfie Cutbush and Nico Valentine netted for the side coached by Adem Atay and Jason Dozzell, who remain second but now seven points behind leaders Charlton, who won 4-3 away at Wigan.
However, they maintain their nine-point lead on third-placed Millwall, who were beaten 5-0 at Coventry. The top two go through to the end-of-season play-offs.
The U18s are next in action on Friday evening when they host the Blades in their Youth Cup semi-final (KO 5pm).
Sheffield United will be streaming the game live via live.sufc.co.uk which will be free for UK-based fans to watch.
The winners of the tie will host Liverpool or Arsenal in the semi-finals with the two Premier League sides meeting on Merseyside later on the same evening.
Town: Bort, Agbaje, Stephenson, Steele, Bradshaw, Cutbush, Chirewa, Valentine (Hoque 61), Manly (Buabo 57), Nwabueze (Barbrook 46), Osbourne. Subs: Ridd.