ANDROS TOWNSEND scored a sensational volley as Crystal Palace won in Manchester for the first time in 28 years.
The Eagles stormed back from going a goal behind to secure a famous victory and fire a huge dent in Pep Guardiola’s hopes of retaining the title.
City now sit four points behind leaders Liverpool – who come to the Etihad for the next home game in 12 days time.
It looked likely to be a routine afternoon for the home side early on as Fabian Delph’s shot was tipped over in first minute while Leroy Sane shot into side-netting.
They finally took the lead just before the half hour as Kyle Walker swept a pass out to the left which Sane knocked back for Delph.
His cross was perfect into the path of Ilkay Gundogan who headed beyond Vicente Guaita – and City were firmly in charge.
But Palace hit back against the run of play as Townsend and James McArthur got the ball out to Jeff Schlupp who held off Walker before firing across Ederson to equalise.
The Etihad was stunned into silence and they were even quieter a few moments later as City failed to clear their lines from a free-kick.
Bernardo Silva’s header was poor but Townsend’s volley from 30 yards was as sweet as they come and it flew into the top corner.
Pep Guardiola had a big problem and he threw on star striker Sergio Aguero off the bench within five minutes of the re-start in a bid to salvage the game.
Andros Townsend score amazing volley goal for Crystal Palace against Manchester City
But soon afterwards they had a mountain to climb – as Townsend’s header hit the post and from the rebound Walker brought down Max Meyer.
Luka Milivojevic – who missed a penalty against City on New Year’s Eve last season – made no mistake this time with a cool spot-kick.
Guardiola also brought on Kevin de Bruyne and Riyad Mahrez as they searched for a way back in but Palace stood firm to claim a famous win.
Sane came close to getting the champions back into it but his long range free-kick hit the outside of the post.
De Bruyne’s overhit cross from the right looped over Guaita’s head to give City some hope of a comeback with five minutes to go - but there was no way back.
Pep Guardiola stands by his players after shock Man City defeat to Crystal Palace