The Gunners maintained their remarkable record against City as this was their 18th victory in 22 Premier League encounters.
It was an important win for Arsene Wenger's side - their seventh on their league travels this season - and was secured by the strike duo of Emmanuel Adebayor and Eduardo.
While Arsenal had plenty to celebrate, City were left to reflect on a worrying dip in form as they have collected only eight points from their last eight league games.
And this disappointing sequence of results could cost City the chance of securing a top four place and maybe even a UEFA Cup spot if they cannot arrest their slide.
Predictably, it was the in-form Adebayor who fired Arsenal ahead in the ninth minute.
Right-back Bacary Sagna made a dangerous overlap on the right and cut the ball back for the Togo international to force home from close range via a deflection off Micah Richards.
There was further misery for City when the Gunners doubled their advantage midway through the half.
This time it was left-back Gael Clichy who made an overlap and his far post cross was headed back across the face of goal by Adebayor for Eduardo to chest down and score with a spectacular overhead kick from six yards.
City were handed a lifeline when they halved the deficit within two minutes.
Clichy was dispossessed by right-back Vedran Corluka, who made a forward burst before cutting the ball back for Gelson Fernandes to score with a shot from eight yards low to the right of keeper Jens Lehmann.
Arsenal would have restored their two-goal advantages but for a fabulous save from Joe Hart to keep out an Adebayor header.
And Adebayor could easily have completed a first-half hat-trick as late on Elano cleared his header off the line.
The second half failed to hit the heights of the eventful opening period, though Arsenal remained the more dangerous side.
Cesc Fabregas twice shot over and wide when well placed and a penalty appeal was waved aside after Adebayor was sandwiched between Richards and Richard Dunne.
City brought on Darius Vassell, Geovanni and Emile Mpenza to try and conjure an equalising goal, but it was to no avail and it was Arsenal who sealed victory in the 88th minute when Adebayor scored his second goal of the game and his 21st of the season.
Referee Andre Marriner waved play on after Adebayor was tripped by Elano and from the resulting breakaway, the striker appeared in the box to shoot low past keeper Hart.