On a day when Tottenham cast off their recent struggles with a shock 2-0 win at Chelsea, who had England star Cole Palmer sent off, Nicolas Jackson proved Villa's hero with both goals in front of his home fans.
Then after City's defeat in the early kick-off on Saturday, Arsenal took advantage by beating Everton 2-0 at Emirates Stadium, with goals from Ezri Konsa and Gabriel Magalhaes in each half thrusting Mikel Arteta's team to second-place on goal difference.
Manchester City had been aiming for an eighth-straight league win but, instead, victory only extended Villa's own outstanding recent run to six wins from seven games in all competitions.
It was a fitting way for Villa boss Unai Emery to celebrate his fourth anniversary at the Midlands club where he's done such a fine job.
"Emery is just a tactical genius. Especially against Man City at our place we have been really good," Villa defender Matty Cash said.Â
"He always has a plan for something and is always coming up with new ideas. When you play against top teams, you have to adapt and we did that today."
Jackson is up to seven goals in all competitions after firing the opener inside six minutes at Villa Park and then hitting his winner in the 60th minute with a first-time finish that squirmed under City goalkeeper Gianluigi Donnarumma.
That was eight minutes after Erling Haaland had headed City level with his league-leading ninth goal of the season.
At Emirates Stadium, Konsa scored his first goal for Arsenal since joining from Villa at the start of the season and ended the champions' run of 13 games without scoring from a set-piece.
Last season's title victory relied heavily on Arsenal's scoring efficiency from corners, in particular, but Konsa's scrambled goal after seven minutes was their first in any competition this term, excluding penalties.
Spurs, without a league win until Monday against Coventry, followed up with a rare victory at Stamford Bridge.
Chelsea goalkeeper Mike Penders inadvertently punched the ball into his own net and gave Spurs the lead before Cole Palmer was sent off soon after and Tottenham sealed their win with an astonishing individual goal, a wonderful run and strike from Mathys Tel.
Meanwhile, Fulham beat Coventry 1-0 with an 80th minute winner from Oscar Bobb in their foot-of-the-table clash.
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