Lancashire won at Aigburth with the largest total match.
LV= County Championship Division One: Aigburth (day three), Hampshire 143, Dawson 41, Bailey 7-37 Lancashire 140 & 198-9 Vilas 47*; Davies 44; Crane 541 Lancashire (19 points) beat Hampshire (3 points) by one wicket Scorecard
With a thrilling victory at Aigburth, Lancashire defeated Hampshire's hopes for a first title in 23 years.
Tom Bailey posted career-best 7-37 figures as Hampshire finished 193-0, having started day three at 158-7.
Alex Davies (44) gave Red Rose County a positive start. Captain Dane Vilas (47 out) led them to 198-9, despite Mason Crane’s 5-41.
If Somerset fails to beat Warwickshire at Edgbaston, Friday, Lancashire will be the county champions.
Hampshire won the title by beating Lancashire after the Bears failed the maximum number of first-innings points.
Their attack, without Kyle Abbott, the leading wicket-taker, was unable to finish the job. James Vince won The Hundred with Southern Brave.
The title has been won by Lancashire seven times, the most recent in 2011. They also share the title with Surrey in 1950.
They seemed to be heading towards their target of 194 at 177-5, but then lost three wickets for 16 runs. Bailey was also run out by Crane, when Vilas called for him.
Jack Blatherwick, who had only three more to go, came out at number 10, to face Liam Dawson. He inexplicably won the strike for the next game with just one run remaining from the last delivery.
Faced by Crane, Blatherwick blocked three balls, but then edged to the second slip. This left Matt Parkinson, the last man, to survive the remainder of the over.
That allowed Vilas to sweep Dawson four-to-one, ending the match and Hampshire’s hopes of winning a third title.
Tom Bailey was able to score 50 Championship wickets for Lancashire, his career-best figure.
Prior to lunch, Bailey, pace bowler, helped Hampshire finish its second innings. With two wickets left to fall, Davies and George Balderson launched the run-chase.
Balderson was caught behind his legs by Dawson, Davies and Keith Barker in successive runs. There was a second setback for Lancashire when Josh Bohannon departed shortly before tea. They reached on 118-4.
Vilas held firm and, despite the sudden flurry by Crane leg-spinner Crane took wickets, kept the home team in the title picture. This put all pressure on Warwickshire.
Lancashire now has 73.5 points. If Warwickshire, who leads Somerset by 157 runs, fails to win and becomes champions, Nottinghamshire could take second place by beating Yorkshire, where they have been given a target of 173.
Lancashire captain Dane Vilas:
"Parky (Matt Parkinson), was never going out to a leg spinner, being the kind of man he is. But it was extremely tense because Mason Crane bowled incredibly well. He was asking some big questions.
"To be in a position to win the County Championship is huge. These opportunities aren't as often available to players. It was an honor and a privilege to be there for us.
"The effort we've put in throughout the season has meant that everyone has stepped up at one stage or another - all the batters have a hundred, and that's what our team wants.
"We have created a culture and an environment that encourages each other to succeed and all of our team members want to succeed."
Hampshire leg-spinner Mason Crane told BBC Radio Solent:
It really hurts. We came close, but we clawed it back. We said that we would fight to the end, and that we did.
"I am proud of the team, and all those who have stuck with it. Although it wasn't meant for today, it was a difficult game. We were inches from winning the Championship, and it was hard to accept.
"Every run was critical towards the end, and it sometimes felt like we had quite a large score there. The pitch seemed to improve with each game.
It hurts but it's worth it.