Raheem Sterling’s first half opener was cancelled out by Jetro Willems before Kevin de Bruyne’s sumptuous second half volley was rendered inadequate by Jonjo Shelvey.
The champions now face a herculean task to keep hold of the title as they are now eleven points behind leaders Liverpool.
At Anfield, Liverpool capitalized on Manchester City’s slip up, to move eleven points clear at the top of the table as two Virgil Van Dijk headers gave them a 2-1 win over Brighton and Hove Albion.
In a rather nervy ending, goalkeeper Alisson Becker was sent off with 14 minutes remaining for handling outside the box and Lewis Dunk stepped up to score the resulting free kick to half the deficit for the visitors.
Tottenham Hotspur’s revival under Jose Mourinho continued with a 3-2 home victory over Bournemouth.
Dele Alli was twice on target in Mourinho’s league bow at home to make it three wins from three since replacing Mauricio Pochettino last week.
Chelsea surprisingly fell to a 1-0 home defeat to a struggling West Ham United side who had lost their last three league games.
Aaron Cresswell’s early second half strike was the difference between the two sides as Frank Lampard lost back-to-back league games for the first time as Chelsea manager.
Crystal Palace earned a priceless away win at Burnley as Wilfried Zaha and Jeffrey Schlupp scored either side of half time to take Roy Hodgson’s side up to 10th.
