The reigning champions slipped to third place after starting the day just two points behind Liverpool.
Liverpool’s 4-1 victory over Brentford earlier in the day aimed to exert pressure on City, while Arsenal’s 5-0 win against Burnley added to the competition.
Ultimately, City settled for their fourth draw of the season after failing to secure three points.
In the 42nd minute, Raheem Sterling returned to haunt his former club, breaking the deadlock with a precise finish into the bottom corner following a swift counterattack by Chelsea.
Sterling, a former City player, had another opportunity to score early in the second half, but Ederson thwarted his close-range effort.
Despite City’s relentless pressure, Erling Haaland missed a clear chance as time ticked away.
In the 83rd minute, Rodri’s powerful strike took a deflection off Trevoh Chalobah and found the net, leveling the score for City.
A debate arose over Colwill’s handling of the ball during added time, but VAR maintained that it was unintentional.
Chelsea held on for a crucial point amid the controversy, as City failed to create another scoring opportunity.
Although Guardiola’s team now trails leaders Liverpool by four points, they still have a match against Brentford scheduled for Tuesday.
