Leicester took the lead at Etihad Stadium through Jamie Vardy's 17th Premier League goal of the season.

But champion City showed grit and determination despite Leicester's threat on the counter-attack and Riyad Mahrez equalised against his old club with a deflected drive.

Raheem Sterling won a penalty that Ilkay Gundogan converted and Gabriel Jesus struck after the break to move City within a point of its second-placed visitors, who remain 10 behind leader Liverpool.

Kevin De Bruyne was outstanding against Arsenal last time out and his low 20-yard drive rattled the outside of the post with Kasper Schmeichel scrambling, but it was Leicester that took the lead with its first shot in the 22nd minute.

Harvey Barnes sent Vardy free down the left channel and he burst away from Fernandinho with ease before expertly lifting a deft finish over the onrushing Ederson.

Mahrez had been giving Ben Chilwell a tough time and, after he beat the full-back again, the former Foxes star's shot flew past Schmeichel, clipping the unlucky Caglar Soyuncu on its way in.

City was ahead by the interval, Ricardo Pereira clumsily bringing down Sterling with Gundogan squeezing his low penalty past Schmeichel despite the goalkeeper getting a hand to the kick, although Ederson had to deny James Maddison on the stroke of half-time.

Mahrez missed two clear chances to extend City's lead early in the second half before De Bruyne tried to set up Gabriel Jesus when he had Schmeichel's goal at his mercy.

Leicester continued to post a threat on the break, Barnes failing to convert a Vardy centre, but Schmeichel had to make a brilliant save to keep out another Mahrez effort.

City clinched it in the 69th minute, De Bruyne, who later went off with apparent cramp to be replaced by the returning Sergio Aguero, evading Soyuncu to cross for Jesus to tap in, and they may yet exert pressure on Liverpool during the second half of the season.