A liner hanger has a housing with a pocket disposed on an inner wall surface and a slip slidingly engaged within the pocket. The liner hanger housing is secured in the string of casing. Both a setting mechanism and a liner engagement member are connected to the slips and are also located in the pocket. A releasable latching mechanism maintains the slips in the run-in position until the releasable latching mechanism is actuated. As the liner is moved through the casing coupler, the liner engagement member engages the liner through frictional force to cause the setting mechanism to move with the liner so that the latching mechanism can be disengaged and the slips can move axially downward. As the setting mechanism moves downward, the slips move radially inward and grip the liner.