Manchester City’s fingertip hold on their Premier League title was further loosened when they lost 2-0 at Everton yesterday and runaway leaders Manchester United defeated Reading 1-0.

Leon Osman’s swerving 32nd-minute shot put Everton in front at a raucous Goodison Park and, even though the home side were reduced to 10 men when Steven Pienaar was red-carded for a rash tackle after 61 minutes, City could not reply.

Substitute Nikica Jelavic sealed victory deep in stoppage time after being set up by a rampaging Marouane Fellaini.

In an evening kick-off United made sure they took full advantage of City’s fourth league defeat of the campaign, Wayne Rooney’s deflected shot sending Alex Ferguson’s side 15 points clear and in sight of a 20th top-flight title.

Everton briefly rose above Arsenal into fifth spot in the battle for a top-four position but the Gunners replied with a 2-0 victory at Swansea City to close within two points of fourth-placed Chelsea who play West Ham today.

Boosted by a surprise, if ultimately fruitless, Champions League win at Bayern Munich on Wednesday, Arsenal struck late through Nacho Monreal and Gervinho.

“It was a difficult game away to Bayern in midweek. The spirit we showed today was fantastic. We’re up for the battle,” Arsenal boss Arsene Wenger told Sky Sports.

Liverpool were beaten 3-1 at Southampton to virtually extinguish their top-four hopes and hand Saints a major boost in their bid to steer clear of trouble.

In a thrilling relegation scrap, Aston Villa clawed a vital 3-2 victory over bottom club Queens Park Rangers.

Christian Benteke scored the winner after 81 minutes to leave QPR seven points adrift of safety.

QPR, seeking a third consecutive league victory, led 1-0 through Jermaine Jenas and then equalised through Andros Townsend having gone 2-1 behind before Benteke grabbed his 13th league goal of the season.

One week after being booed and heckled by their fans in an embarrassing 3-0 FA Cup defeat at home to struggling Wigan, Everton produced a gutsy performance to remain in contention for a top-four finish.

“Last week was disappointing but we showed when we are at the races we are a match for any team,” said Osman.

“It’s difficult to play with 10 men against any team, especially the champions, but we kept them at bay.”

Osman’s strike was a special one. Receiving the ball from Seamus Coleman 25 metres out, he lashed a shot that flew past England keeper Joe Hart.

Carlos Tevez went close to an equaliser with a shot just wide of the post but City missed the drive of Yaya Toure in midfield as Everton dominated.

City showed more desire after the break and were pressing hard for an equaliser when Pienaar raked his studs down the shin of Javi Garcia who had earlier squandered a close-range chance.

The inevitable red card merely raised Everton to greater efforts, with second-choice keeper Jan Mucha exemplifying their commitment with a double save from Tevez and James Milner.

City were denied a blatant late penalty when Tevez’s shot was blocked by the arm of Fellaini, with the referee ruling it had been outside the box and awarding only a free-kick.

Jelavic’s effort made it a dark day for the champions whose manager Roberto Mancini declined to give his post-match television interview, instead sending out assistant David Platt.

“He’s angry and he’s taking stock of it,” Platt said.

“He wants to calm down rather than say anything that will get him in trouble.”

Southampton beat Liverpool thanks to goals from Morgan Schneiderlin, Rickie Lambert and Jay Rodriguez with Philippe Coutinho pulling one back for the seventh-placed visitors just before half-time.

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