Pep Guardiola’s side fell to a 1-0 defeat at Wembley Stadium where Hakim Ziyech was Chelsea’s match winner.
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The Moroccan slid in to convert Timo Werner’s cross in the 55th minute and City, who saw Kevin De Bruyne limp off with a suspected injury, were unable to produce a response.
Ziyech had a goal disallowed for offside early in the first half, whilst Christian Pulisic also saw a late effort ruled for the same reason, but at the other end, City struggled to replicate the superb form which has characterised this season.
Fernandinho and Ruben Dias both had opportunities with headers, but neither could find the target on a disappointing night.
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