The duo, who have contested the title between them for the past few seasons, served up a thrilling clash, especially in a pulsating first 45 minutes.
Liverpool took an early lead thanks to Mo Salah's penalty after Kyle Walker was adjudged to have fouled Sadio Mane in the box.
But City fought back to level through a brilliant Gabriel Jesus strike just past the half hour and then could have gone ahead only for Kevin De Bruyne to miss from the penalty spot after Joe Gomez had handled.
It was a more cagey affair after the break but an absorbing encounter which ended with honours even.
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