Liverpool took the lead through Alex Oxlade-Chamberlain after just nine minutes, but City ensured that they would go into the break all square when Leroy Sane restored parity shortly before half time.
Goals from Roberto Firmino, Sadio Mane and Mohamed Salah in a devastating eight-minute spell saw Liverpool blow City away in the second half, although they were forced to hang on for victory after Bernardo Silva and Ilkay Gundogan pulled goals back late on.
Find out how an action-packed match unfolded courtesy of Sports Mole's minute-by-minute coverage below.
Thank you very much for joining Sports Mole for this incredible contest as Liverpool end Manchester City's unbeaten run in the Premier League at 30 matches courtesy of a 4-3 victory at Anfield. I will leave you with our match report, and be sure to stick around for reaction too.
From me, though, it is goodbye for now!
Three goals in the space of eight second-half minutes proved to be enough for Liverpool after Leroy Sane had earlier cancelled out Oxlade-Chamberlain's opener, although City certainly didn't go down with a whimper as late goals from Bernardo Silva and Gundogan gave them hope of a memorable comeback in the final 10 minutes.
Sane takes the ball inside before finding Aguero, who stands a cross up into the box. Gundogan somehow finds space in there to take the ball down on his chest and poke it past the keeper from close range!
The visitors pull a goal back as Sane cuts inside from the left flank before seeing his shot well blocked. The ball only falls to the feet of Bernardo, though, and he tucks away his finish into the bottom corner. Nervy times ahead for Liverpool!
Mohamed Salah scores his 24th goal of the season (18 in PL)— Sky Sports Statto (@SkySportsStatto) January 14, 2018
The 3rd time this season that Firmino, Mane & Salah have scored in the same PL game, 1st since the 4-0 win v Arsenal, Aug 27 pic.twitter.com/wQUTj9fZY9
Salah plays a pass through which is easily mopped up by Ederson, but his clearance only sends it straight back to Salah. The Egyptian still has plenty to do, but he takes a touch before lofting it over the stranded keeper and into the empty net from all of 35 yards.
WATCH: Moments after Mane clips the outside of the post, he scores @LFC's third, and second in three minutes!— Sky Sports PL (@SkySportsPL) January 14, 2018
Follow live updates, in-game goals and clips and watch live on Sky Sports Premier League: https://t.co/JW41AWppjl https://t.co/RGb61pWgV7
Mane, having missed a chance moments ago, picks up possession on the edge of the area before drilling a stunning strike right into the top corner, leaving Ederson so chance. Anfield is rocking!
The Brazilian shrugs off Stones to get on the end of a pass forward, with the Man City defender beaten far too easily. From there, Firmino lifts an exquisite finish over Ederson and into the far corner. Brilliant finish.
Shots on target: 2-2
Liverpool and City have both played well and it has been a good, even tussle so far which hopefully we will see more of in the second half. Both teams have enjoyed spells in the ascendancy.
Gomez first misjudged Walker's long diagonal ball forward, allowing Sane to take it down and break in behind the full-back. Sane then cut back onto his left foot before firing a powerful effort past Karius at the near post. The Liverpool keeper should have done better, but it was a fine solo effort from Sane nonetheless.
Firmino battled well to win the ball off Delph inside the Man City half before poking it back to Oxlade-Chamberlain, who immediately drove forward. The Ox then drilled a crisp low effort past Ederson and into the corner from around 25 yards to send Anfield into raptures.
Both sides have played with a good tempo and intensity, with the game living up to the billing so far. It is still all to play for in the second half, and both sides will be believing that they can go on to win this game.
It is a really good goal from Sane too as he collects a long ball on his chest, with his first touch taking Gomez out of the game. He cuts inside before then going back on to his left foot and slamming a powerful effort past Karius at the near post. Karius should have done better, but take nothing away from Sane there.
3 - Alex Oxlade-Chamberlain has scored as many goals in 20 Premier League appearances for Liverpool than in his last 71 appearances for Arsenal. Flourishing.— OptaJoe (@OptaJoe) January 14, 2018
WATCH: Oxlade-Chamberlain drives forward before unleashing a low effort from 20 yards out into the far corner to give @LFC the lead!— Sky Sports PL (@SkySportsPL) January 14, 2018
Follow live updates, in-game goals and clips and watch live on Sky Sports Premier League: https://t.co/JW41AWppjl https://t.co/JaQO7jLvQB
Firmino wins possession off Delph and immediately gives the ball to Oxlade-Chamberlain, who drives forward towards the edge of the area before letting fly from around 25 yards out. It is hard, low and right in the corner to beat Ederson and give Liverpool the lead over City!
LIVERPOOL STARTING XI: Karius; Gomez, Lovren, Matip, Robertson; Can, Wijnaldum, Oxlade-Chamberlain; Salah, Firmino, Mane
MAN CITY STARTING XI: Ederson; Walker, Stones, Otamendi, Delph; Fernandinho, De Bruyne, Gundogan; Sane, Sterling, Aguero
Liverpool were well in the game at the Etihad and arguably should have been ahead with the chances they created before Mane was sent off for a high boot on Ederson - a decision which divided opinion.
That result was the first time City have scored five or more goals in a game against Liverpool since March 1937, and another win today would see them clinch a league double over the Reds for the first time since that 1936-37 campaign, when City won their maiden top-flight title.
The corresponding fixture last season took place on New Year's Eve, when Georginio Wijnaldum scored the only goal of the game after only eight minutes to fire Liverpool to victory.
This, on paper, looks to be the biggest test remaining for Man City in their bid for invincibility, and Liverpool seem well matched to cause Guardiola's side plenty of problems. City will still go into the game as slight favourites, but there are plenty of people backing Liverpool to end their unbeaten run and I am among them. A narrow home win in an entertaining game!
SPORTS MOLE SAYS: Liverpool 3-2 Manchester City
In the Premier League alone Man City are currently on a 30-game unbeaten streak, which is the sixth-longest in the history of England's top flight. A win or draw today would see them match Liverpool's longest-ever unbeaten run of 31 games, set in 1987-88.
Guardiola's side have won a staggering 30 of their 33 games across all competitions this term, including nine of their 10 outings since their one and only defeat of the season, which came away to Shakhtar Donetsk when they had already qualified for the knockout stages of the Champions League.
This is a much different Man City side now, though, and as if their record points tally, goals scored and goal difference was not enough to outline their dominance of this season so far, Pep Guardiola recently became the first man to win the Premier League Manager of the Month award in four successive months.
City have also kept clean sheets in each of their last three away games, and another today would see them make it four on the bounce in the top flight for the first time in their history.
This may be as good a time as any for Liverpool to face City, then, but their overall record on the road is still formidable with just one defeat and 16 wins from their 19 away games across all competitions.
Liverpool have kept nine clean sheets in their last 13 Premier League home games, but Man City are the only remaining unbeaten team away from home in the league this season and only dropped their first away points of the campaign against Crystal Palace in their most recent visit.
City are the only team who have outscored Liverpool in the Premier League this season, while also boasting the league's best defensive record, so it will be very interesting to see whether they are able to enjoy a similar level of dominance over Liverpool this time around.
Since Klopp's arrival in October 2015 Liverpool have also won more points in Premier League games between the 'big six' than any other side (39), whilst also boasting more wins (9), fewer defeats (3) and more goals (40) than anyone else in those fixtures.
Despite all that, Liverpool would still only sit sixth in the table if just home form counted, due largely to their five draws from their 11 league outings at Anfield this term. Indeed, while both of their league defeats have come on the road, Liverpool have picked up just two fewer points away from home than they have at Anfield this term.
That run includes all 16 home games so far this season and 11 in the Premier League, making one of only two teams - alongside today's opponents - to be undefeated in front of their own fans this term.
Liverpool have only lost two league games all season, but they did not win a single top-flight match in January last year and only won one of nine across all competitions - that coming against minnows Plymouth Argyle in an FA Cup third round replay. The Reds can simply not afford to go on a similar run this year.
The Reds have won 12 and drawn five of their 17 matches across all competitions since then, making for Klopp's longest unbeaten run at Liverpool, and another victory today would see them string together a run of five in a row for the first time since October 2016.
However, Saturday also brought the good news of another Chelsea draw - against 10-man Leicester - so should Klopp's side become the first English team to beat Man City this season then they would not only restore the three-point gap to fifth place, but they would also climb up to third. Indeed, victory by four goals or more would even see them move up to second, at least until Manchester United take on Stoke tomorrow night.
Manchester City's stats make them a daunting task for any club, but Liverpool will feel that they stand as good a chance against Pep Guardiola's side as anyone else. Indeed, while they fell to a 5-0 defeat at the hands of City in the reverse fixture, they actually managed to slice through the City defence on numerous occasions before Mane's 37th-minute red card effectively ended their hopes.
De Bruyne keeps up his ever-present record today, although there are six changes from the EFL Cup semi-final win over Bristol City as the likes of Ederson, Walker, Otamendi, Delph, Fernandinho and Aguero all return to the starting lineup.
Only Salah and Kane have scored more Premier League goals than Sterling this season, while no player in the top flight has laid on more goals than Sane's nine.
Aguero has six goals in 11 appearances against Liverpool overall - more than another other player in the City squad - but all six of those have come in six games at the Etihad, whereas he is yet to find the back of the net in five City visits to the red half of Merseyside.
David Silva is one influential player to miss out, although the Spaniard is on the bench amid ongoing concerns over the health of his premature son. The playmaker has been flying between England and Spain in recent weeks, but is available to be called upon today should Man City need him.
Alex Oxlade-Chamberlain once again starts in the midfield three with Lallana left on the bench, and Klopp has made only three changes to the side which beat Everton in the FA Cup third round last Friday. In contrast, there are five changes from their last Premier League outing on New Year's Day.
Sadio Mane has not quite been as his scintillating best for much of the campaign, though, and today would be a perfect time to return to form having been shown a controversial game-changing red card in the reverse.
Salah has missed the last two games with a groin problem, but he is back this afternoon looking to add to his tally of 17 Premier League goals for the season. Indeed, Salah has been directly involved in 22 goals from his opening 21 Premier League appearances for Liverpool, a tally only Andy Cole (23 for Newcastle) and Dwight Yorke (23 for Manchester United) can beat in Premier League history.
Well the headline news is that there is no Virgil van Dijk for Liverpool, with the new world's most expensive defender being denied his Premier League debut for the club due to a tight hamstring.
Van Dijk got his Liverpool career off to a dream start with a late winner at the Kop end in the FA Cup Merseyside derby last Friday, and his absence will be a major blow to Liverpool as they come up against the league's highest scorers here. Dejan Lovren comes into the heart of the defence in his place.
Manchester City have been nigh-on unstoppable so far this term, but Liverpool are perhaps the only team in England who look capable of beating the Citizens at their own game and ruining their bid for immortality.
It promises to be a very interesting showdown on Merseyside, so let's waste no time in starting with a look at the team news...