It was an electric start from both teams at the raucous Anfield and Pep Guardiola‘s took the lead after 23 minutes, with Stones poking in expertly at the near post from Kevin De Bruyne‘s clever and inventive low corner.
Shortly after the interval, the hosts were provided a route back into the game after a short back pass resulted in Ederson bringing down Darwin Nunez inside the box.
The resulting penalty was struck into the top left corner by Alexis Mac Allister beyond the sprawling Ederson.
The goal sprung the Reds to life and they almost took the lead on two occasions in quick succession, but twice Luis Diaz failed to find the target from promising positions.
Jurgen Klopp’s side then went close again, with Darwin Nunez poking Andy Robertson’s whipped cross towards goal, but substitute goalkeeper Stefan Ortega Moreno spread himself well to block the attempt.
With two minutes of normal time left to play, Jeremy Doku sprinted through on the left flank and shot across goal, only for the ball to rattle off the inside of the post and into the grateful arms of Caoimhin Kelleher.
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Neither side could find the decisive goal and had to settle for a point each after an energetic, lively and enthralling encounter at Anfield.
The point keeps Arsenal at the top of the league table on goal difference, with Liverpool second and City third, a point behind the leading pair with ten games left to play.
View the best images from the pulsating clash via our gallery below.