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Everton's plummet towards the relegation zone continued as they lost 1-0 at home to Wolverhampton Wanderers but Leeds United gained some respite with a last-gasp 2-1 win over bottom club Norwich City.
Liverpool narrowed City's lead at the top to three points with both teams having 11 games left to play.
Manchester United's top-four hopes were dented as they were held to a 0-0 draw by relegation-threatened Watford.
Mohamed Salah and Luis Diaz allowed Juergen Klopp's Liverpool to close the gap to six points at the top, and they also have a game in hand over City.
Manchester United's troubles continued as a 1-1 draw with Southampton further damaged their top-four hopes.
He takes over a club four points above the relegation zone, and facing the distinct possibility of finding themselves competing outside top tier English football for the first time in almost 70 years,
Manchester United moved into the top four of the Premier League with a last second goal from Marcus Rashford earning them a 1-0 win over West Ham United at Old Trafford.
Leeds United pulled eight points clear of the relegation zone with a 3-1 win over Burnley.
Third-placed Chelsea, who had drawn with Everton and Wolverhampton Wanderers in their previous two games, are now level with second placed Liverpool on 41 points -- six behind leaders Manchester City.
Liverpool move onto 40 points from 17 games, one behind leaders Manchester City.