Doubles from Harvey Barnes and Jamie Vardy helped Leicester City secure a comfortable 4-0 victory over Aston Villa.
Leicester remain third but have won just one of their last seven league games, failing to score in three successive matches as their bid to qualify for the Champions League hits a rocky patch.
Gabriel Jesus came off the bench to score a second-half winner that put Manchester City 7 points clear of fourth-placed Leicester City.
Antonio Rudiger rescued Chelsea as the German defender's second goal of the game earned a 2-2 draw against top-four rivals Leicester on Saturday.
Pep Guardiola's City travel to face Tottenham while third-placed Leicester host Chelsea and Manchester United take on Wolves in an intriguing set of fixtures.
Aston Villa reached their first League Cup final for a decade with a 2-1 win over Leicester on Tuesday.
Leicester edged into the FA Cup fifth round as Kelechi Iheanacho's early goal sealed a 1-0 win at second tier Brentford on Saturday.
Liverpool have earned 61 points from a possible 63 in 21 games to streak 16 points clear at the top and with a game in hand over second-placed Leicester.
Chelsea and Manchester United secured comfortable wins in the race for the Premier League top four.
Second-placed Leicester are now 10 points behind Liverpool, who face Sheffield United at Anfield on Thursday.
Sadio Mane scored the only goal of a controversial clash at Anfield as Liverpool extended their unbeaten run at home in the league to 50 games.
Manuel Pellegrini was sacked by West Ham after their home defeat to Leicester City left them just one point above the Premier League's relegation zone in 17th.
Roberto Firmino scored twice from Trent Alexander-Arnold crosses either side of James Milner's penalty before the brilliant Alexander-Arnold rounded off the scoring himself.
Leicester City arrived in Manchester on an 11-match unbeaten run, but were outclassed throughout despite taking the lead through Jamie Vardy.
Third placed Manchester City and second placed Leicester City will clash in a crucial Premier League tie on Saturday.
The Tottenham vs Chelsea Premier League clash will pit Frank Lampard against his former manager Jose Mourinho.
Leicester paid a heavy price for a poor start as Teemu Pukki put the Canaries in front before a Tim Krul own goal brought Brendan Rodgers's men level before the break.
Premier League: Leicester closed the gap on Premier League leaders Liverpool as Jamie Vardy extended his red-hot streak with a brace in record-breaking 4-1 rout of Aston Villa.