City lost out on a chance to leapfrog fellow Champions League chasers Nottingham Forest following a 1-0 defeat in the East Midlands.
Pep Guardiola’s men remain in fourth in the top-flight table with Nuno Espirito Santo’s side cementing their spot in third after a Callum Hudson-Odoi strike resulted in defeat for the Blues.
Hudson-Odoi earned all three points for the Tricky Trees late on as he came onto a Morgan Gibbs-White crossfield ball before firing past Ederson.
City had chances through Nico and Kevin De Bruyne either side of the break while a Mateo Kovacic half-volley whistled past the post in the dying embers.
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