Unbeaten in five games beforehand, four of them victories - over Charlton Athletic, Preston North End, Everton and West Bromwich Albion - we went into the clash in a confident mood.
Chelsea, who rise to second on the back of this success, took the lead just six minutes into a tight PL2 contest through Shumaira Mheuka before centre-back Harrison Murray-Campbell doubled their lead just before half-time.
City, though, remained in the game and halved the deficit on 58 minutes with Kirsten Otchere finding the net, although we were unable to level matters, ending a productive run of form.
A rare home defeat in PL2.
That being said, the side coached by Leon McSweeney remain seventh in the PL2 standings, just six points adrift of leaders Manchester United, in what is shaping up to be tight campaign in the U21 league this term.
Our youngsters are back in action this Sunday when we travel to Eppleton Colliery Welfare Ground to tackle Sunderland, currently 24th in the 29-team table, a 1pm GMT kick-off in the North East.
City: French; Khela, Amartey, Donnelly, Ali; Golding (Hutchinson 61'), Motsi (Lindsay 77'), Neale (Omobolaji 74'), Fisken (Toko 61'), Briggs; Otchere.
Subs not used: Donohue.
Goal: Otchere 58'.