Tottenham Hotspur striker Harry Kane scored his ninth Premier League goal of the season on Wednesday, as Spurs beat Southampton 3-1 to move into third place in the table.
Mauricio Pochettino's side went above Chelsea, who were surprisingly beaten 2-1 at Molineux by Wolverhampton Wanderers.
Liverpool remained in second, still just two points behind Manchester City, after coming from behind to beat Burnley at Turf Moor.
Arsenal dropped to fifth after being held to a 2-2 draw by Manchester United at Old Trafford. The Gunners twice took the lead, but goals from Anthony Martial and Jesse Lingard rescued a point for the Red Devils.
Burnley 1-3 Liverpool
Everton 1-1 Newcastle United
Fulham 1-1 Leicester City
Wolverhampton Wanderers 2-1 Chelsea
Manchester United 2-2 Arsenal
Tottenham Hotspur 3-1 Southampton
Pierre-Emerick Aubameyang, Arsenal: 10
Harry Kane, Tottenham Hotspur: 9
Raheem Sterling, Manchester City: 8
Callum Wilson, Bournemouth: 8
Sergio Aguero, Manchester City: 8
Glenn Murray, Brighton & Hove Albion: 8
Aleksandar Mitrovic, Fulham: 7
Mohamed Salah, Liverpool: 7
Eden Hazard, Chelsea: 7
Alexandre Lacazette, Arsenal: 7
Anthony Martial, Manchester United: 7
Richarlison, Everton: 7
Premier League Standings
(Games Played, Goal Difference, Points)
1. Manchester City 15, +38, 41
2. Liverpool 15, +24 , 39
3. Tottenham 15, +12 , 33
4. Chelsea 15, +18 , 31
5. Arsenal 15, +14 , 31
6. Everton 15, +4 , 23
7. Bournemouth 15, +3, 23
8. Manchester United 15, -1, 23
9. Leicester City 15, +3, 22
10. Brighton & Hove Albion 15, -2 , 21
11. Watford 15, -3 , 20
12. Wolverhampton Wanderers 15, -3, 19
13. West Ham United 15, -3, 18
14. Newcastle United 15, -8, 13
15. Crystal Palace 15, -9 , 12
16. Cardiff City 15, -16 , 11
17. Huddersfield Town 15, -16, 10
18. Southampton 15, -16, 9
19. Burnley 15, -18 , 9
20. Fulham 15, -21 , 9
Manchester United's winless run in the Premier League now stretches to four games after they were held at home by Arsenal.
Manager Jose Mourinho surprised some with his starting XI. The Red Devils boss opted to drop Paul Pogba and Romelu Lukaku:
The hosts started off with an intensity and drive that has largely been missing from their play this season, but they went behind through an error from goalkeeper David De Gea. The Spain international failed to deal with a header from Shkodran Mustafi, and Ander Herrera could not prevent it from going over the line.
Squawka Football highlighted De Gea's record:
Arsenal's lead did not last long, as Martial equalised four minutes later from close range after goalkeeper Bernd Leno could only parry a Marcos Rojo shot.
Sky Sports Statto showed his impressive goalscoring form:
Alexandre Lacazette put Arsenal back in front on 68 minutes, but Lingard levelled almost immediately after capitalising on a mix-up between Leno and Sead Kolasinac.
Arsenal did have other chances to score in the second half, but De Gea made up for his earlier error with some important saves:
The result means Arsenal dropped to fifth, while Manchester United are eight points off the top four. The Red Devils showed plenty of character, but once again they simply lacked quality.
Liverpool remain hot on the heels of Manchester City at the top, but they had to come from behind against a struggling Burnley side.
Jurgen Klopp opted to rotate his team and started without Mohamed Salah, Roberto Firmino and Sadio Mane.
The Reds struggled to create chances in a goalless first half, and they went behind after the break when Jack Cork poked home from close range.
James Milner managed to find an equaliser with a low shot, before substitute Firmino put the visitors ahead with his first touch of the match:
Switzerland international Xherdan Shaqiri sealed the winner late on, finishing off a quick counter-attack to keep the Reds within touching distance of the champions at the top.