Erling Haaland shrugged off missing an early penalty to head in his 99th Premier League goal before Nico Gonzalez's deflected effort and a wonder strike from Jeremy Doku confirmed City's status as Arsenal's major title rivals.

Liverpool have now lost four of their last five league games to leave the defending champions down in eighth, eight points off the top.

Arsenal's 10-game winning run came to an end in a 2-2 draw at Sunderland on Saturday and Guardiola's men took full advantage in the battle of the two sides that have dominated the Premier League over the past decade.

Even if decisions went against Arne Slot's men, this was another show of how far they have fallen since cruising to a 2-0 win at the Etihad in February.

The Reds showed signs of a revival in beating Aston Villa and Real Madrid in the past eight days, but had no answer to the slickness of a rejuvenated City, who have won 11 of their last 14 games in all competitions.

Conor Bradley shut down the threat of Madrid's Vinicius Junior on Tuesday but was given a torrid time by the pace and trickery of Doku down City's left.

Doku made the most of Ibrahima Konate's clearance off Bradley to round Giorgi Mamardashvili before his trailing leg was clipped by the Georgian.

Referee Chris Kavanagh was initially unmoved but pointed to the spot after a VAR review.

Haaland has struck 28 times already this season for club and country, but is yet to score for City from the spot.

Mamardashvili redeemed himself by getting down low to his left to turn the Norwegian's penalty to safety to briefly lift the mood among the Liverpool players and travelling support.

City remained in control of the game, though, as Rayan Cherki's effort was deflected wide before Mamardashvili turned Doku's strike after another mazy run into the side-netting.

Haaland has only failed to score in two of his 18 appearances this season and duly delivered with a looping header to meet Matheus Nunes' wicked delivery on 29 minutes.

Liverpool thought they were level nine minutes later when Van Dijk's header from a corner arrowed into the far corner.

However, Andy Robertson ducked out the way of his captain's effort and was deemed to have interfered with Gianluigi Donnarumma from an offside position.

Instead of going in all square, City rubbed salt in the wounds of Liverpool's perceived injustice.

The visitors were slow to get out from a corner and Gonzalez had time to take aim before his shot deflected off Van Dijk to wrong-foot Mamardashvili.

Liverpool only had themselves to blame for not getting back in the game early in the second period as Cody Gakpo blazed over with the goal gaping at the end of a fine move involving Mohamed Salah and Bradley.

But Doku fittingly rounded off arguably his best performance in three seasons at City in style to seal a statement victory.

The Belgian jinked inside the leaden-footed Konate before curling into the top corner from outside the box.

Salah summed up Liverpool's day and season so far when he dinked wide a glorious chance 10 minutes from time.

Despite the visitors need for goals, Slot left £125 million ($165 million) striker Alexander Isak on the bench for the entire match due to his lack of match fitness.

The decision to tear up the squad that coasted to the title with a near £450 million spend in the transfer window looks more misguided by the game as Liverpool find themselves in a battle just to make the top four rather than the title race.