Both teams had met in the season curtain-raiser- Community Shield and Mikel Arteta’s men had the last laugh after winning via penalty shootout.
This gives Jurgen Klopp another opportunity to stop Arsenal’s winning runs against him having lost their last two meetings.
They will now face each other in one week in the Premier League and the Carabao Cup fourth round.
Liverpool youngster Curtis Jones, Takumi Minamino scored braces in the 7-2 thrashing, while Marko Grujic, Xherdan Shaqiri and Divock Origi scored a goal each in the third round affair.
Lincoln goals came through Tayo Edun and Lewis Montsma.
Klopp describes Curtis Jones as an exceptional talent
Klopp has now singled out Jones for praise after the match, describing him as an “exceptional talent”,
“We will have some fun with him I am pretty sure in the future,” he said.
Rhys Williams and Kostas Tsimikas, former Wolves forward Diogo Jota, all made their debuts.
Shaqiri opened the excellent evening with a brilliant ninth-minute free-kick into the top corner. Minamino doubled their lead with a curler from outside the box and teenager Jones scored from Origi’s cushioned header.
Jones got his brace via a slight deflection to give the Reds an unassailable 4-0 half-time lead to score his fifth goal for his hometown club.
“Both goals were difficult, for the second one the first touch was absolutely exceptional between two opponents and then he opens up and sees the opportunity and finishes it off,” said Klopp.
Grujic scored the fifith after drilling home from 20 yards, and Montsma reduced the deficits for the third EFL Cup tie in a row – with a header in via the crossbar.
Origi then smashed home from a Minamino pass.
“I think in the first half there was a class of finishing from Liverpool, with one or two mistakes.
“In the second half it was very difficult and a disappointing performance – I thought we should have scored four or five goals.
“If we had put some kind of bucket in the top corner or maybe a sheet to stop them [Liverpool’s goals] going in,” Michael Appleton, Lincoln boss said.
Speaking further, Klopp said his team played a really good football game that was easy on the eye.
“We passed the ball and finished situations off. The boys wanted to play football and showed an exceptional attitude,” he told BBC Radio 5 Live.
Other Carabao Cup games
Meanwhile, Tottenham Hotspurs, whose game against Leyton Orient was postponed after coronavirus hit the camp of their opponent will meet Chelsea if they progress past the lower league side.
The defending champions, Manchester City faces Burnley after edging out Bournemouth 2-1 at the Ettihad.
Aston Villa also progressed after beating Bristol City 3-0 to set up a tie with Stoke in the next round.
The round-four games will be played on September 28, with four – to be announced at a later date.
Carabao Cup round four draw
Liverpool vs Arsenal
Burnley vs Manchester City
Brentford vs Fulham
Everton vs West Ham
Aston Villa vs Stoke
Leyton Orient or Tottenham vs Chelsea
Newport vs Newcastle
Brighton vs Manchester United