Arsenal have now opened a four-point lead at the top of the Premier League, following Sunday’s round of matches.
The Gunners defeated Leeds United 1-0 at Elland Road earlier in the day.
Bukayo Saka drilled in a pass from Martin Odegaard in the first half to score the only goal of the encounter.
Manchester City had the chance to close up the gap between them and Mikel Arteta’s men.
But the Premier League champions lost 1-0 to Liverpool at Anfield.
Mohamed Salah raced onto a long pass from goalkeeper and shrugged off Joao Cancelo to score the winner in the second half.
Arsenal now have 27 points after 10 matches, while City have 23. Liverpool are now eighth with 13 points.