The Foxes, who were unchanged from last weekend’s 3-0 victory over Arsenal, stood strong for 70 minutes until Man City captain Vincent Kompany unleashed an unstoppable strike that found the top corner of the net.
While the hosts had the lion’s share of possession throughout the fixture in Manchester, it was City who had the most notable chance early on as Ricardo Pereira saw a shot blocked by Kompany.
Both sides continued to trade blows inside 15 minutes as Kasper Schmeichel was on hand to deny Phil Foden, while Ederson collected a long-range effort from Youri Tielemans at the other end of the pitch.
Wayward attempts from Foden and Kyle Walker followed, and some fine defending from Jonny Evans thwarted the advances of Raheem Sterling down the left flank.
Man City’s best opportunity of the first half fell to Sergio Agüero, who flicked a header onto the underside of the bar before Schmeichel clawed the loose ball off the line and away to safety.
After the interval, a brace of efforts from Sterling and Bernardo Silva failed to trouble Schmeichel, while James Maddison sent a curling strike just inches wide of Ederson’s left-hand post.
Schmeichel was called into action on 69 minutes as he spread his legs to deny Agüero from close range, but the Denmark international could do nothing about Manchester City’s next shot on goal.
Kompany drove forward from defence and initially hesitated before hammering a thunderous strike into the top corner – an effort that would eventually settle the match.
It was Iheanacho who went closest to grabbing an equaliser with three minutes to play, but the Nigeria international couldn’t direct Hamza Choudhury’s pass on target after some excellent work from the City midfielder.
Kasper Schmeichel and Vincent Kompany
Kasper Schmeichel and Vincent Kompany shake hands at the final whistle after the Belgian's strike settled the game.
Having repelled Manchester City’s advances for 70 minutes, Brendan Rodgers’ men looked as if they would claim a valuable Premier League point from their clash at Etihad Stadium.
But a decisive goal from Vincent Kompany sealed all three points for Pep Guardiola’s side, who move back to the Premier League summit following the slender 1-0 triumph.
Hamza Choudhury and Marc Albrighton
Hamza Choudhury and Marc Albrighton applaud the 3,000 members of the travelling Blue Army after the final whistle.
Academy graduate Hamza Choudhury was a significant presence in the heart of Leicester City’s midfield, coping with the threat of the talented trio of David Silva, İlkay Gündoğan and Phil Foden.
A destroyer of Man City attacks on multiple occasions, he also set up Kelechi Iheanacho late on following a lung-busting run, but the Nigerian couldn’t hit the target.
Where do we stand?
Ricardo Pereira saw a shot blocked by Vincent Kompany in the first half.
Leicester City remain ninth in the Premier League table, two points behind eighth-placed Everton and one point ahead of Watford, who occupy 10th position. A point from their final game of the season will all but guarantee a top-half finish.
Brendan Rodgers saw his side go toe-to-toe with the current Premier League champions on Monday night.
The Foxes conclude their 2018/19 campaign on Sunday 12 May (3pm BST kick-off), when Chelsea visit King Power Stadium in the Premier League.
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