After Sunday's crushing 4-2 derby defeat at Manchester United, even a top four finish and a place in next season's Champions League is no longer a certainty.
Second-placed City would have reduced Arsenal's advantage to two points but instead were frustrated as their winning streak in all competitions was halted at eight.
Chelsea and Manchester City offered compelling evidence that they will lead the pursuit of leaders Arsenal and champions Manchester United lost further ground on a Sunday that brought the third managerial casualty of the Premier League season.
After Saturday's 2-1 win at Chelsea - their 12th in 13 league matches - Aston Villa have claimed 18 points from losing positions so far this season, more than any other team.
Juergen Klopp is being tipped as Manchester City's next manager after announcing on Wednesday that he would be leaving Borussia Dortmund at the end of the season after seven years in charge.
City travel to Rodri's former club Villarreal on Tuesday in the Champions League before facing Villa in the Premier League on Sunday.
Manchester City defender Matija Nastasic will miss the start of the season with an ankle injury, the Premier League club said on Tuesday.
Manchester City went top of the Premier League, at least until Manchester United play at Stoke City later on Saturday, when they beat Everton 2-0 at the Etihad Stadium with goals from second-half substitutes Mario Balotelli and James Milner.
Images from Sunday's action in the Premier League.
Manchester City seized the opportunity of Arsenal's 2-1 loss at Aston Villa earlier in the day to climb within two points of the leaders.
Chelsea manager Liam Rosenior has dropped Enzo Fernandez for two matches after the midfielder publicly cast doubt over his future at Stamford Bridge.
'By giving cameras unimpeded access to their world-class training facilities and coaches, and by showing off Guardiola's genius, All Or Nothing is a striking show of power, a declaration of their conviction of being the bigger club in Manchester,' says Dhruv Munjal.
IMAGES from the EPL matches played on Saturday
Real Madrid fought back from the brink of elimination to beat Manchester City 3-1 after extra time and 6-5 on aggregate in an enthralling and dramatic Champions League semi-final on Wednesday.
English Premier League champions Manchester City will kick off their title defence at home to promoted Southampton on August 18 before facing Liverpool at Anfield the following weekend.
Manchester City failed to fire in a frustrating 0-0 home draw with StokeCity on Wednesday that dealt a damaging blow to their Premier League title hopes and left them 10 points adrift of leaders Chelsea.
Manchester City have suspended midfielder Joey Barton for the rest of the season after a training ground incident, British media said on Tuesday.
Manchester City captain Carlos Tevez has repeated his threat to leave the club to be closer to his family in Argentina.
Manchester City captain Vincent Kompany is confident his side's strike force can make the difference against Barcelona in the second leg of their Champions League last-16 tie on Wednesday.
It has been a long time arriving but Manuel Pellegrini can finally celebrate some meaningful European silverware - 10 years after arriving in Spain as a relative unknown.
Two moments of magic in the space of two second-half minutes helped Manchester City to a 3-1 victory over Sunderland in the English League Cup final at Wembley on Sunday.
A summary of Sunday's action in the Premier League.
Arsenal's new manager Unai Emery faces a baptism of fire after the Gunners were handed an opening day fixture at home to Premier League champions Manchester City.
Attack is the best form of defence for Manchester City boss Pep Guardiola.
Manchester City opened up a two-point lead over their neighbours Manchester United at the top of the English Premier League on Saturday thanks to another display of scintillating brilliance in a 7-2 thrashing of Stoke City at the Etihad Stadium.
An IndiGo flight from Delhi to Manchester was forced to return to its origin due to last-minute airspace restrictions related to the ongoing situation in West Asia. The flight was using a leased Boeing 787 aircraft.
Bayern, who won the Champions League in 2013, have yet to hit top form this season, with many players tired after the World Cup and others, including Thiago Alcantara, Bastian Schweinsteiger and Rafinha, out injured.
Real Madrid reached their 14th European Cup final and crushed Manchester City's hopes of a maiden title after Gareth Bale's deflected effort secured a 1-0 victory in the second leg of their Champions League last four clash on Wednesday.
English Premier League club Manchester City have named Bayern Munich coach Pep Guardiola as their new manager from July, hoping the Spaniard can emulate the glory years he enjoyed at Barcelona.
A Stevan Jovetic double and a third to Sergio Aguero helped Manchester City send out an ominous warning to those with designs on their Premier League crown, routing Liverpool 3-1 in the first heavyweight clash of the new season on Monday.
Manchester City keeper Willy Caballero's penalty shootout heroics sealed a League Cup final win against Liverpool.
Under-fire Liverpool boss Arne Slot said he feels "complete support" from the club and the fans on Friday, even as his team endures a torrid run of form and supporters plan protests over rising ticket prices.
Manchester City manager Pep Guardiola has said his job at the English Premier League club may be on the line if they fail to win the Champions League title this season. City have won five major domestic trophies since Guardiola took over in 2016 -- including two Premier League titles and an historic domestic treble last year -- but have never progressed past the quarter-final stage of the Champions League since the Spaniard's arrival.
ManchesterCity's Premier League title challenge derailed once the club announced Pep Guardiola would take charge from next season, outgoing manager Manuel Pellegrini has said.
Manchester City rediscovered their swagger to beat Chelsea 2-0 and move into the quarter-finals of the FA Cup on Saturday, Manuel Pellegrini winning the battle of tactical wits against Jose Mourinho.
Before Diego Maradona's famous blue shirt became a $9.28 million auction item, it may have had a humbler beginning in Tepito, Mexico City's market district.
Anger driving City to new heights, says City manager Manuel Pellegrini.
Norway's prolific striker Erling Haaland wasted no time in opening his World Cup account as he found the net twice in a 4-1 defeat of Iraq in Group I on Tuesday that sent a warning to defenders in the rest of the tournament.
News of that transpired on and off the football field
Tottenham Hotspur's 2-1 defeat at Chelsea has increased their risk of Premier League relegation, while Chelsea's victory boosts their chances of European qualification.