Arsenal were left two points clear at the top of the Premier League table as rivals Manchester United and Chelsea both dropped vital points.

Manchester City completed a first league victory at Old Trafford since 1974 and a season double over Manchester United with a 2-1 victory, thanks to goals from strikers Darius Vassell and new signing Benjani Mwaruwari.

Chelsea then stayed third but missed the chance to close to within a point of United after being held to a goalless draw by Liverpool at Stamford Bridge.

It was an important result for Liverpool, who moved into fifth place on goal difference, and were left just three points behind city rivals Everton, with a game in hand, in the race for the fourth and final Champions League spot.

There were poignant scenes before kick-off at Old Trafford as fans from both Manchester clubs respectfully observed a minute’s silence in the week of the 50th anniversary of the Munich air disaster. In all, 23 lives, including those of eight United players from the celebrated ‘Busby Babes’, were killed when a plane carrying the team home following a European Cup tie against Red Star Belgrade crashed on take-off after refuelling at Munich Airport.

Vassell put the visitors ahead in the 25th minute when he scored from the second attempt following good work by Stephen Ireland and Martin Petrov.

Just before half-time Benjani, a transfer-window signing from Portsmouth, marked his City debut by flicking on Petrov’s cross into the far corner, just beyond the dive of United goalkeeper Edwin van der Sar.

England midfielder Michael Carrick pulled a goal back in the second minute of stoppage time but it was too late to prevent a win which bolstered City’s bid for a European place. United assistant manager Carlos Queiroz said nerves had played their part in his side’s defeat. “We didn’t play very well,” he said.

“We did not have any tempo or inspiration early in the game. We were perhaps too anxious at the start, and that combined with a Manchester City side who showed good movement and were strong on the counter-attack.”

Queiroz added United had paid a price for having so many players on international duty during friendly games earlier in the week. “We had seven or eight players who played 90 minutes in a friendly during the week and every time they come back to us they are affected by it in the next game,” he said. “The team was affected by those who played for their national teams but of course we cannot use that as an excuse.”

City’s victory gave them a first league double over local rivals United since the 1969/ 70 season.