Manchester City's hopes of defending their Premier League title were dealt another blow as Crystal Palace staged a comeback from being two goals down to secure a 2-2 draw, with Michael Olise's last-minute penalty proving decisive on Saturday.

Pep Guardiola's team initially took control, with Jack Grealish opening the scoring in the first half, followed by Rico Lewis doubling the lead after the break.

However, the champions faltered in the second half at the Etihad Stadium, witnessing Jean-Philippe Mateta reduce the deficit late in the game before Olise converted a penalty in the fifth minute of stoppage time.

This marks the fifth instance in six league games that Pep Guardiola's side has dropped points, previously drawing with Chelsea, Liverpool, and Tottenham and losing to Aston Villa before a 2-1 win at Luton last Sunday.

Heading to Saudi Arabia for the Club World Cup after this match, City now finds themselves in fourth place on the table, trailing leaders Liverpool by three points. The quest for an unprecedented fourth successive title is in jeopardy, although Guardiola may draw inspiration from their comeback late in the previous season when they overcame an eight-point deficit to secure the title.

In the absence of the injured Erling Haaland, City dominated early on, with Julian Alvarez's fifth-minute header saved by Palace goalkeeper Dean Henderson. The breakthrough came in the 24th minute when Phil Foden assisted Grealish for his third goal in as many league games, confirmed after a VAR check for offside.

Despite Josko Gvardiol and Foden coming close, City had a second goal disallowed for offside in the second half. Lewis then added the second, seemingly putting the city in control. However, Palace mounted a comeback with Mateta's goal in the 76th minute, and Olise's penalty deep into stoppage time completed the stunning turnaround for Crystal Palace.