Luis Diaz spared Liverpool a rare Anfield defeat, but a 1-1 draw with Tottenham on Saturday represents a major blow to the Reds' title ambitions.
Son Heung-min left the famous old stadium shaken early in the second half when he tucked in from close range to give Antonio Conte's visitors a shock lead.
That was his 20th league goal of the season, and Liverpool knew anything other than a win would put City within sight of the Premier League trophy.
Liverpool have an unprecedented quadruple in their sights, and Diaz's deflected strike for an equaliser in the 74th minute just about kept the dream alive, but hopes might be fading. They go top for now, level on points with a City side who have a game in hand, against Newcastle United on Sunday.
Mohamed Salah and Harry Kane had early shots blocked, before Virgil van Dijk nodded wide after getting on the end of an outswinging Andy Robertson corner from the left.
A misdirected defensive header from Ryan Sessegnon almost gave Salah a tap-in, but Hugo Lloris was alert to the danger.
Van Dijk headed against the top of the Tottenham crossbar from a Trent Alexander-Arnold corner, before Luis Diaz drew a save from Lloris with a fizzing low strike. Pierre-Emile Hojbjerg served a reminder of the visitors' threat when his skidding drive hit the outside of the left post.
Liverpool were full of purpose, swarming and probing early in the second half for the big chance that might bring a breakthrough.
However, they were stunned by Son in the 56th minute, when he slotted past Alisson after Kane's pass to Ryan Sessegnon on the left was followed by a sharp centre to the unmarked South Korean.
Jurgen Klopp threw on Diogo Jota, looking for a spark, and Salah soon had a great chance as he cut inside on his left foot, only for Ben Davies to produce a glorious block.
Diaz hit the equaliser when his 22-yard strike took a massive deflection past Lloris, finding the bottom-left corner, and try as they did, Liverpool could not find a second.
Al-Khaleej 0-1 Al-Nassr: Ronaldo misfires on return as Laporte nets winner
Cristiano Ronaldo returned from suspension but failed to find the net as Al-Nassr secured a 1-0 win over Al-Khaleej on Saturday, with Aymeric Laporte coming up with the decisive goal.
Ronaldo was in action for the first time since being sent off for an elbow in a 2-1 Saudi Super Cup loss to Al-Hilal earlier this month, with his initial two-match ban being reduced to one on appeal.
He missed three good chances as Al-Nassr threatened to fall further behind runaway Saudi Pro League leaders Al-Hilal, but former Manchester City defender Laporte spared his blushes by nodding Marcelo Brozovic's deep free-kick into the bottom-left corner with 68 minutes gone.
Al-Nassr remain nine points adrift of Al-Hilal at the summit in spite of their win, with Jorge Jesus' team unbeaten through 28 games this season as they close in on a record-extending 18th title.
Data Debrief: Ronaldo misfires on return
Ronaldo was presented with the Saudi Pro League's Player of the Month award for March ahead of kick-off, having scored four goals in three league appearances last month.
However, his sights were off on Saturday as he failed to net despite three of the visitors' four big chances, as defined by Opta, falling his way. He led all players on the pitch for expected goals (1.27 xG), shots (five), shots on target (three) and touches in the area (nine) without reward.
Huddersfield all but relegated from Championship while League Two play-off spots decided
Huddersfield Town saw their relegation from the Championship all but confirmed after a 1-1 draw with fellow strugglers Birmingham City on Saturday.
The Terriers avoided a defeat that would have seen them relegated on Saturday, but even a win on the final day over promotion hopefuls Ipswich Town will not be enough unless they overcome a huge goal difference of 15 goals with Plymouth Argyle.
Birmingham remain in the other relegation place and now must beat Norwich City to stand a chance of staying up with Sheffield Wednesday, Plymouth and Blackburn Rovers also still in danger.
At the other end of the table, the Canaries dropped points in a 2-2 draw with Swansea City, leaving the door open for Hull City, who face Ipswich Town later today.
Salah: There will be 'fire' if I speak after Klopp clash
Mohamed Salah refused to talk to the media following a touchline clash with Liverpool boss Jurgen Klopp, saying there would be "fire" if he spoke.
Liverpool's Premier League title hopes are hanging by a thread following a 2-2 draw at West Ham on Saturday, and much of the discussion after the game centered on a flare-up between Salah and Klopp in the latter stages of the contest.
Salah, dropped from the starting XI for the visit to the London Stadium, was involved in a furious confrontation with Klopp prior to being substituted on, with the pair having to be separated by Joe Gomez and Darwin Nunez.
Following the game, Salah made a comment as he walked through the media area, refusing to conduct interviews with the press.
"If I speak today there will be fire," Salah stated as he refused to discuss the incident.
Klopp was also not very forthcoming on the confrontation after a draw which leaves his team two points off leaders Arsenal and a point behind second-placed Manchester City having played at least a game less than both of their title rivals.
When asked about the Salah dispute, Klopp told TNT Sports: "I'm not in the mood to talk about that to be honest or look at that at all."
Klopp has just three games left of his Liverpool tenure, and despite the success he has endured at Anfield, including a Premier League title and Champions League glory, it's at risk of ending in a damp squib.
Klopp hopes his team can avoid that disappointing conclusion by finding their form again over the remainder of the campaign.
"We had to win here, we knew that, and we didn't," Klopp continued. "Now we have a little bit more time between now and the next game.
"We try to get the boys ready again and we will go again."
SportsMax is the Caribbean sports channel of choice, committed to providing sporting content of the highest quality to the Caribbean, delivered by a team of highly innovative, passionate and qualified professionals.
(876) 619-7629
digitalmedia@sportsmax.tv
