Completing the packed festive program with an engrossing encounter, Liverpool's threatened a comeback when Roberto Firmino cancelled out Sergio Aguero's first-half opener but Leroy Sane struck the victor in the 72nd minute.
With no more league meetings between the sides to come, Liverpool's destiny is still in their own hands, but they will now have the pressure of having a City side that romped to the title with a record 100 points last season on their tails.
Manchester City enjoyed 49% of possession during the game and had nine shots on goal as compared to Liverpool's 7. "It had wild moments". Liverpool didn't need to beat Manchester City, they just need to beat everyone else to win the league.
Even a draw, which would have left Liverpool seven points clear, would have been something of a footballing Everest for City and Tottenham to climb to finish on top.More news: Netflix tweets 'Bird Box Challenge' warning: Do not hurt yourselves
During the game, the ex-Barcelona coach threw his scarf on the ground and shouted at the fourth official, Martin Atkinson, after a decision in the second half did not go the way of his team.
Stones' first goal-saving intervention came just after Sadio Mane had hit the post with the deadlock yet to be broken 17 minutes in, and Aguero capitalized on that reprieve shortly before the break. It proved just enough, as goal-line technology ruled out the score.
Liverpool boss Jurgen Klopp felt referee Anthony Taylor had made the wrong call by issuing only a caution, but City's captain insisted his intent was purely to win the ball.
He added: "I thought it was a great challenge, was it not?"More news: Tesla cuts prices as 4Q deliveries miss analysts' estimates
"I think he showed his class", Fernandinho said.
I am sure that is how Klopp will look at it too. "It was that or let him go through on goal". We need to be ready and we will be.
Speaking from experience, Merson, who won two First Division titles with Arsenal during his career, told Sky Sports: "The quicker they go out of these competitions, the more of an unbelievable chance they have to win the Premier League".
He's so important for them and they really missed him in the games they lost last month. Why should we behave like somebody who has won it all the time?More news: Floyd Mayweather Punks Opponent, Alludes to $9 Million Payday
The equalizer was created by the fullbacks in the 64th.