Oscars 2014: Liza Minnelli sparks fashion controversy on the red carpet, called drag queen by Ellen DeGeneres

The US entertainment legend raised eyebrows in an electric blue trouser suit

Liza Minelli on the red carpet at the Oscars 2014 (Getty Images)

Liza Minnelli's show-stopping Oscars outfit has caused a Twitter storm as the US singer/actress matched her electric blue trouser suit with a streak of hair dye - and a rather unfortunate wardrobe malfunction.

Oscars host Ellen DeGeneres won the first awkward reception of the night when she quipped about an amazing "Liza Minnelli impersonator", a joke she followed up with "Good job, Sir".

Liza Minnelli's Failed Ellen Selfie Attempt

Minnelli's attention-grabbing outfit revealed she appeared to have 'forgotten' to wear underwear, resulting in a flood of posts on Twitter.

"Liza Minnelli, otherwise known as 'Nip'" wrote one Twitter user, while another described the legend's outfit as "borderline obscene".

While many mocked Minnelli's choice of red carpet get-up, others defended Judy Garland's 67-year-old daughter for her more adventurous fashion decision, which has proved the most controversial of the evening so far.

"How cute is Liza Minnelli and her blue hair streak? At 67, why not?" read one favourable tweet, while another wondered whether she had turned up at the wrong party. "Has anyone told Liza Minnelli she's at the Oscars?" it read.

Lupita Nyong'o exceeded all expectations in a plunging pale blue dress as she arrived on the red carpet, ready to hear whether she will be taking home the Best Supporting Actress award later in the night.