We can't lose to Chelsea after defeat by Gunners, admits Manuel Pellegrini

Manchester City manager Manuel Pellegrini and Arsenal manager Arsene Wenger speak during their English Premier League soccer match in Manchester

Manuel Pellegrini admitted his Manchester City side must win at Chelsea in this month's title showdown after slumping to a shock home defeat against Arsenal.

Goals from Santi Cazorla and Olivier Giroud gave Arsenal the win which saw Chelsea maintain their five-point lead over champions City at the top of the table.

City and Chelsea meet at Stamford Bridge on 31 January, with Pellegrini conceding his team must win that contest to have any chance of retaining their title.

“The game we must play at Stamford Bridge is a very important game,” said the Chilean. “We must close the gap to two points.

“I hope we are going to recover and play the way we have been playing so far this season.

“We still have to play against Chelsea so it will be a very decisive game. We will try to win that game to close that gap again.”

Pellegrini criticised skipper Vincent Kompany, making his return after five weeks out injured, for giving away the 23rd-minute penalty from which Cazorla gave Arsenal the lead.

“There are two principal reasons why we lost,” he said. “One was the penalty, which changed the game. I don’t think it was a penalty, but it was unnecessary [for Kompany] to do it.

“The movement of Kompany allows him [Nacho Monreal] to dive. I’m not saying it was a bad mistake of the referee. The penalty changed the game, but it was not the reason we lost.

“We didn’t play a good game. We run a lot had a lot of possession but we didn’t have creative ideas to try and find the space against a team that defended very well.”

Jubilant Arsenal boss Arsene Wenger praised his side for the win, which takes them up to fifth place - within a point of fourth-placed Manchester United.

“The difference is that we have injured players back that were out for a long time, the confidence of the team is high and some players are in good form,” said the Frenchman.

“We looked always dangerous when we won the ball. Time will tell [what the win means]. What is for sure is that it increases the amount of belief and confidence.

“The five months in front are very important in the lifespan of our team. They will determine our season.”