Luka Modric pulled one back for Zinedine Zidane's shellshocked side with a brilliant strike from distance early in the second half before substitute Vinicius Jr reduced the deficit to one goal.
IMAGES from the Champions League matches played on Wednesday.
Danny Welbeck, making his first appearance of the season as a late substitute, headed a stoppage-time winner to give Arsenal a 2-1 home win over league leaders Leicester City in the Premier League on Sunday.
Photos from the English Premier League matches played on Sunday
Until this season Manchester City's progression in the Champions League could be measured in baby steps but on Tuesday they can make a huge leap forward when they host Real Madrid in their first European semi-final for 45 years.
Two months after dropping him following a string of mistakes, ManchesterCity manager Manuel Pellegrini on Friday hailed goalkeeper Joe Hart as "the best in England".
Manchester United, buoyed by five successive Premier League victories, head into Sunday's derby against Manchester City a place and a point above their rivals and believing they are poised to restore red ascendancy in the city.
Rediff.com brings a preview of the main matches coming up this weekend in the English Premier League.
Match-by-match facts and statistics ahead of the Premier League
The dynasty will only be built on European success, though, and after the quarter-final exit to Liverpool, Manchester City's owners, who want a gilded continental powerhouse to match United's global lustre, will demand it and back those demands with huge funding.
A stoppage-time goal from Martin de Roon earned Middlesbrough an unlikely 1-1 draw at Premier League leaders Manchester City on Saturday.
Demonised as a caricature of the highly-paid modern-day footballer whose ego dwarfs his talent, Raheem Sterling will have few fans when the Premier League begins next weekend.
Rediff.com brings a preview of the main matches coming up this weekend in the English Premier League.
Watford climbed into the top four of the Premier League after Tom Cleverley's 92nd-minute goal gave them a 2-1 victory over Arsenal at Vicarage Road on Saturday.
Real Madrid got their Champions League title defence off to a strong start on Wednesday by convincingly beating AS Roma 3-0 at home with goals from Isco, Gareth Bale and a stoppage-time strike from returning striker Mariano Diaz.
The United fans, who celebrated the victory at the end of the game with the manager and players, have not been the source of criticism of Solskjaer -- indeed the Norwegian has enjoyed strong backing from supporters who attend games at Old Trafford and those who travel away.
Bristol City, from English football's second-tier, pulled off a sensation in the League Cup quarter-finals as they knocked out the holders Manchester United 2-1 amid late and wholly improbable drama at their Ashton Gate home on Wednesday.
The Premier League season is only a week old and the problems are already piling up for misfiring champions Chelsea after a 3-0 thrashing at Manchester City on Sunday.
News of all that's transpired on and off the football field
Second-half goals from Leroy Sane and Raheem Sterling stunned Arsenal at the Etihad Stadium on Sunday as Manchester City came from behind to win 2-1 and move seven points behind leaders Chelsea.
Images from Champions League matches played across Europe on Tuesday
ManchesterCity's season began to unravel when Kevin de Bruyne missed 10 matches with a knee injury but as he showed when he scored against Paris St Germain on Tuesday, anything is possible with him back in the team.
Another English football legend, Frank Lampard bid goodbye with a goal for Manchester City on final day of the season
Hull City were relegated and Newcastle United survived the drop on a dramatic final day of the Premier League season on Sunday when West Ham United announced that manager Sam Allardyce's contract was not being renewed at Upton Park.
Robert Huth's double and a Riyad Mahrez goal sent Premier League leaders Leicester City six points clear after a stunning 3-1 victory at shell-shocked title rivals Manchester City on Saturday.
Surprise leaders Leicester City face a severe test of their Premier League title credentials over the next 10 days, starting with Saturday's trip to Manchester City.
News of all that's transpired on and off the football field
The plucky underdogs were brought down to earth as Manchester City, Everton and Stoke City reached the League Cup semi-finals on Tuesday, ending the hopes of second-tier sides who felled fancied opponents in the last round.
Four months after quitting Liverpool for Manchester City, Raheem Sterling will have the first opportunity to justify the move by getting one over his former employers when the teams meet at the Etihad Stadium on Saturday.
Manchester City can pile the pressure on Premier League leaders Chelsea for the first time this season.
The victory puts the pressure back on title rivals Liverpool who are at Cardiff City on Sunday and trail by a point with each side having played 34 games.
Images from the English Premier League matches played on Sunday
Tottenham Hotspur reached the semi-finals of the Champions League on away goals after a 4-3 (aggregate 4-4) defeat to Manchester City in a breathtaking quarter-final second leg game on Wednesday.
Lionel Messi set a new Champions League scoring record with a hat-trick and Luis Suarez netted his first in Barcelona colours as the Spaniards comprehensively beat APOEL Nicosia 4-0 in the Champions League on Tuesday.
The year was 1986 and with just three league wins to their name by the first weekend of November, Manchester United dismissed Ron Atkinson as manager and appointed Alex Ferguson.
The top posts on social media from your favourite Bollywood celebrities.
Manchester City moved back into third place and almost guaranteed Champions League qualification thanks to a 3-1 home victory against West Bromwich Albion on Tuesday at the Etihad Stadium.
Following Chelsea's tame draw against Manchester City, questions are being raised about the Jose Mourinho-managed team's game plan and attitude.
It was a day of role reversal as Jose Mourinho's often cautious Chelsea thumped Everton 6-3 in a thriller on Saturday while champions Manchester City's attacking talents were blunted in a shock 1-0 home defeat by Stoke City.
Salah was seen training with a protective cast on his forearm this week but Klopp dismissed any fresh injury concern relating to the Egyptian.
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