Firmino's equaliser, followed by Sane's victor, capped a pulsating second half, but City's win denied Liverpool the chance to open up a 10-point gap by claiming victory. City now trail leaders Liverpool by just 4 points.
Jürgen Klopp claimed that Vincent Kompany could have ended Mohamed Salah's season with a unsafe challenge as Liverpool's unbeaten run came to an end at the Etihad Stadium.
Graeme Souness has no doubts that Manchester City's Fernandinho is the best midfielder in the Premier League. "I got the ball, a little bit of the man but it wasn't naughty", said Kompany, who was seen urging Salah to get up following the crunching tackle.
I don't think Liverpool ever really found their stride against City, or played at the level we have come to expect from them, yet they still only suffered a narrow defeat.
After missing a number of games in December, the Brazilian has returned in fine form, playing a key role in City's exhilarating 2-1 win over Liverpool.
It was in the 18th minute that the first big chance of the match arrived, as Liverpool miraculously failed to score.
"Tomorrow morning we wake up, it feels still average and then we have the opportunity to work on it and prepare for the next game and that's what we will 100 percent do".
"A very intense game and we were unlucky in our finishing moments", Klopp said.
Speaking during Sky Sports' coverage of the game, Neville pulled out the positive of Alexander-Arnold's performance, highlighting his contribution for his side's goal.
Mauricio Pochettino's Spurs, meanwhile, are just two points behind City and six off Liverpool having recovered to a shock defeat at home to Wolves by thumping Cardiff on the road.
"If we lose today it is nearly done, it would be so hard".
Before facing Liverpool, Guardiola's side had lost three of its last five league games - a run which saw them drift seven points from the top spot and allowed Tottenham to sneak into second place.
Jurgen Klopp's side remain, given a favourable fixture list, justifiable favourites to finish the season as champions for the first time in 29 years but, as Arsenal fans were only to happy to point, out, their trophy won't be a golden one...
Kompany was handed a booking after firing into the Liverpool forward with a crunching challenge during the teams' Premier League top-of-the-table clash at the Etihad Stadium.
"He knows Mo is that quick that if he gets the ball, he's through so he takes the risk".
- Why Liverpool will not win the Premier League this season
- Weather: Overnight rain-snow mix could spell slick commute
- Tua Tagovailoa Gets His Heisman Revenge As Alabama Takes Down Oklahoma
- Seahawks clinch playoff berth with win over Chiefs
- Spin ace Ravichandran Ashwin all but ruled out of final Test
- Qu'est-ce qu'un passeport diplomatique — Affaire Benalla
- Trump offers holiday greetings to US troops
- Assad's forces must fill void left by US, Russia tells Turkey
- John Kelly contradicts Trump on border demands
- Stock Boom Day After Christmas