Martin Jol's side recorded its elusive first away victory of the season as they ended City's impressive home run - they suffered their first home league defeat of the campaign.
This was not, however, an unexpected upset as City has failed to beat Spurs at home since 1994, a sequence of eight league and cup games.
It proved a fascinating duel as Spurs looked to have the game won when Calum Davenport and Tom Huddlestone put them 2-0 ahead midway through the opening half.
Spurs had enough chances to have sealed victory long before Joey Barton handed City an unexpected lifeline midway through the second half, with his goal setting up a thrilling finale.
But despite City having territorial advantage in the last quarter of the match, they were unable to conjure an equalising goal which would have preserved their unbeaten home record.
City's two changes from their defeat in the Manchester derby were both enforced by suspension, as Ben Thatcher and Bernardo Corradi were replaced by Stephen Jordan and Paul Dickov.
Spurs also had two changes forced upon them as Michael Dawson was ruled out through a one-match ban and Aaron Lennon through injury, Davenport and Hossam Ghaly won call-ups.
City received an early let-off when Dimitar Berbatov's shot beat keeper Nick Weaver only for Sylvain Distin to come to the rescue with a goal-line clearance.
But it proved only a momentary let-off as Spurs took a 16th minute lead through Davenport.
Huddlestone's free-kick was floated into the penalty area from the left and Davenport rose to glance a header from ten yards high to the left of Weaver.
Incredibly it was Spurs' first away goal of the season from open play.
And it was quickly followed by a second Spurs goal within two minutes, a stunning half-volley from outside the penalty area as Huddlestone connected to a Ghaly cross to fire low to the right of Weaver.
City's troubles increased on the half hour when right-back Micah Richards limped off to be replaced by Stephen Ireland, forcing a tactical reshuffle.
City were also fortunate not to concede a third goal before the break as Steed Malbranque's goalbound effort was blocked by Richard Dunne, Huddlestone's ferocious drive flew narrowly over the crossbar and Berbatov brought an excellent save from Weaver.
City manager Stuart Pearce made a second substitution at the start of the second half replacing the ineffective Georgios Samaras with Nedum Onuoha and switching Darius Vassell to partner Dickov up front in a new-look strike partnership.
But it was Spurs who remained the more potent attacking threat as they ought to have added a third goal when Jermain Defoe wriggled in between Distin and Ireland to burst through on goal, only to fire into the sidenetting when he ought to have hit the target.
Midway through the second period City clawed their way back into the game with a goal out of nothing.
Dickov provided the assist with a cross from the left which Barton volleyed past Paul Robinson from a tight angle six yards from goal.
It belatedly brought City to life and they gained a belief they could get something out of a game which had looked lost.
Though City showed more ambition in the final quarter of the game than in the preceding three quarters, they were unable to find a route to goal for a second time as Spurs held on for their first away day success of the season.