Liverpool's 10th straight league victory carried them to 77 points, five points ahead of Chelsea. The Reds are also seven points ahead of City who have two games in hand on the Merseyside team.
Liverpool now has four games to play, and if they win them all, they will claim their first top-flight title in 24 years.
Coach-cum manager Brendon Rodgers described it as an incredible and remarkable performance, and added that the team has both spirit and quality.
According to Sport24, Raheem Sterling and Martin Skrtel scored the first two goals for Liverpool. City responded with two goals in five minutes from David Silva and a Glen Johnson own goal to set up a thrilling finale.
Liverpool won with Philippe Coutinho capitalizing on a Kompany mis-kick to seal a 3-2 win.