Erling Haaland scored his 10th Premier League goal but it was not enough to beat Aston Villa on Saturday.
City had won their last nine games against Villa and it looked like another victory was on the cards when Haaland struck five minutes into the second half.
But Leon Bailey hit back for the home side at Villa Park to take them out of the relegation zone.
Villa were second best for much of the game but arguably would have won had Philippe Coutinho not been denied by an incorrect offside call.
Highlights: Aston Villa 1-1 Man City
Haaland's opener came courtesy of a side-foot volley from close range after Villa keeper Emiliano Martinez had failed to intercept Kevin De Bruyne's deep cross.
City went close to making it 2-0 on multiple occasions.
De Bruyne hit the crossbar from a free-kick and also fired just wide having been teed up by Haaland, who himself went close to scoring a second when he forced a strong save out of Martinez.
City were punished for not converting their chances when Villa scored with their first shot on target 16 minutes from full-time.
A low cross from Jacob Ramsey was thundered into the top corner by Bailey.
Villa had the ball in the City net again five minutes later when Coutinho fired home from the edge of the penalty area, but the flag had been raised for offside.
Replays showed that Coutinho had NOT been offside, but the whistle had already sounded so the VAR was unable to intervene.