British and Irish Lions Captain Sam Warburton Photo: Greg Bowker/New Zealand Herald via AP

The British and Irish Lions stumbled to a 23-22 defeat to the Otago Highlanders on Tuesday as they suffered the second loss of their tour ahead of next week's first Test against the All Blacks.

The Lions finally found their attacking mojo, scoring three tries to two – more than doubling their try tally so far – but lost from a winning position through a late penalty.

They now have two wins and two losses after four outings on their gruelling 10-match New Zealand tour, with the first Test in Auckland looming a week on Saturday.

The match was played at breakneck pace in front of a capacity 27 000 crowd at Forsyth Barr stadium, with both sides attempting to run the ball under the covered roof.

It resulted in a chaotic scramble in the final minutes, when replacement fly-half Marty Banks potted a penalty to give the Highlanders a one-point edge.

Elliot Daly attempted to return fire but his long-range penalty effort fell just short, before centre Jonathan Joseph's knock-on after the siren dashed hopes of a last-gasp comeback.

The loss against a Highlanders side missing seven players on international duty was a disappointment for Warren Gatland's men, who were looking to build momentum after beating the Canterbury Crusaders on Saturday.

They also have concerns over lock Courtney Lawes, who went off in the first half with head knock. Fullback Stuart Hogg earlier departed the tour after suffering a facial fracture against the Crusaders.

Haka-free zone

The Lions showed attacking intent, with captain Sam Warburton among the try-scorers as he fights to secure his Test spot after a run of injuries.

The Highlanders decided against performing a haka before the match and were instead led out by a piper before captain Dan Lienert-Brown handed Warburton a giant claymore sword.

The hosts tested fullback Jared Payne under the high ball early but he proved up to the challenge, prompting them to send the ball wide.

After a penalty apiece, All Black Waisake Naholo scored the first try after Malakai Fekitoa broke the Lions' defensive line and flanker Gareth Evans off-loaded as he was being crashed to the ground.

Joseph hit straight back with a scything run that left Highlanders fullback Richard Buckman flailing, locking up the scores 10-10 at the break.

Scottish winger Tommy Seymour put the Lions into the lead just after the restart, beating Fekitoa in the air as he tried to gather Naholo's cross-field kick.

Warburton then gave the tourists a third try after a dominant Lions scrum, only for Highlander Liam Coltman to retaliate from a lineout drive.

That reduced the arrears to 22-20, and Owen Farrell missed a chance to give the Lions some breathing space with a penalty from out wide.

But Banks made no mistake after the Highlanders won a scrum penalty, coolly slotting over the posts to put the hosts ahead 23-22 with eight minutes to go.

Daly's ambitious kick from 56 metres fell just short before Joseph's mistake ended the match, a harsh result for the try-scorer, who was one of the Lions' standouts.

The Lions' next tour match is against the Maori All Blacks in Rotorua on Saturday, with the first Test in Auckland a week later.