City started fast, with Erling Haaland pressing high and forcing early nerves, while Rayan Cherki struck the post in a lively opening. The breakthrough soon followed as Cherki weaved past defenders to fire City ahead with a brilliant low finish.
But Arsenal responded immediately. A rare mistake from Gianluigi Donnarumma gifted Kai Havertz the chance to equalise, which he took calmly to bring the visitors level.
Arteta felt his side executed their plan despite falling behind early. "We came here to win the game," he said. "We prepared to play it in the areas we believed we could win it, and we certainly done that. Even going a goal down, we responded well."
The second half remained finely balanced. Haaland struck the woodwork, while Donnarumma denied Havertz after a sharp Arsenal counter. But the defining moment arrived when Haaland outmuscled Gabriel to convert from close range and restore City's lead.
Arteta was clear about where the game was decided. "The reality is in the two boxes today was the difference," he said. "That decided the game. The difference was 100 per cent in those moments."
Arsenal continued to fight, with Gabriel heading against the frame of the goal and Havertz seeing a late chance drift just over, but luck was not on their side. "It's incredible how the ball doesn't go in," Arteta admitted. "There is an element of luck, timing and execution. Today, those things didn't go our way."
Despite the defeat, Arteta insisted belief remains strong in the dressing room. "I believe today, like I did before, because I see them every day," he said. "We have five games to go, we are still ahead, and everything is still to play for."
He added: "The players were disappointed, but they said we lost an opportunity today and now we have the biggest one in the next five games. We're not going to stop. We will go again."
Arsenal now prepare for a crucial test against Newcastle United, knowing the title race has taken a decisive and dramatic turn.
