Arsenal midfielder Mikel Arteta struck four minutes from time as Manchester City lost ground in the title race at the Emirates Stadium this afternoon.
The hosting Gunners dominated for large parts of the encounter, striking the woodwork on three occasions until Arteta's goalscoring intervention.
Arsene Wenger's side first hit the bar in the 16th minute when Thomas Vermaelen deflected Robin van Persie's header onto Joe Hart's woodwork.
City striker Mario Balotelli was then lucky to escape a red card when he went in with a high challenge on Arsenal midfielder Alex Song in the 20th minute.
Balotelli had City's best chance of the half, but he failed to make a clean connection from eight yards out.
The Gunners struck the woodwork for a second time in the 61st minute when Van Persie's downward header hit the base of the post following a chipped pass from Song.
Then, 15 minutes later, Hart turned Theo Walcott's low effort onto the post, before Thomas Vermaelen and Yossi Benayoun failed to convert the rebound.
Just as the match looked as though it was heading for a draw, Arteta shot in from 20 yards out into the bottom right hand corner of Hart's net.
Balotelli's frustration got the better of him two minutes after the goal when he was sent off for a challenge on Bacary Sagna.
Substitute Aaron Ramsey spurned a late chance for the Gunners to seal the points when he shot over from close range.
However, the home side held out to claim all three points and regain third spot.