Liverpool captain Steven Gerrard cried tears of joy as his team moved a step closer to a first league title in 24 years with a thrilling 3-2 win over championship rivals Manchester City at Anfield.

Philippe Coutinho’s strike 12 minutes from time settled a pulsating encounter, which went all the hosts’ way in the first half with goals from Raheem Sterling and Martin Skrtel.

City showed their resolve to bring it back to 2-2 in the second half as David Silva and a Glen Johnson own goal pulled them level, but a sliced clearance from City captain Vincent Kompany fell kindly to Coutinho to rifle in the decisive fifth goal of the match.

Chelsea, the other title-chasers, visit in a fortnight and a successful negotiation of that fixture would put Liverpool in the driving seat to win a first title since 1990.

City still have two matches in hand but this defeat takes things out of their control as they are now seven points off the top.

When Sterling was put through by Luis Suarez, the winger showed remarkable composure and feinted right, moved left before switching back almost in the same movement and with such speed it left his marker and England goalkeeper Joe Hart so out of position that it created a big gap at the near post in which to drive the ball.

If City were all over the place before key midfielder Yaya Toure departed with an injury they were almost clueless afterwards, allowing Gerrard a free header from a corner which Hart superbly tipped over.

It only delayed the inevitable as from the resulting Gerrard corner Skrtel easily lost Kompany, nipped in front of Gael Clichy and flicked a header over Hart and inside the far post.

The speed of Liverpool’s attacks had City chasing shadows — unfamiliar territory for them — and Coutinho, Suarez and Sturridge combined to almost make it three.

James Milner’s introduction for Jesus Navas five minutes after half-time produced a positive response with the England international combining to allow Silva to expertly round off an incisive passing move from close range.

Silva, finding greater freedom, created the equaliser when he drifted left and drilled in a low cross which Johnson diverted past Simon Mignolet.

City were now in the ascendancy and Silva should have put them in front when substitute Sergio Aguero, making his first appearance for a month after a hamstring problem, skipped past Skrtel and crossed to him but the Spaniard guided his shot wide.

It was to prove costly as a misjudgement by Kompany presented Coutinho with a first-time chance which he drilled past Hart.