Arsenal equalised through Theo Walcott, before Shkodran Mustafi's second-half header cancelled out Sergio Aguero's strike, but the point leaves the Londoners in sixth on 51 points, seven behind City who now occupy the final Champions League qualifying berth.
Arsenal defender Shkodran Mustafi again restored parity eight minutes after the break when he rose above Nicolas Otamendi to head Mesut Ozil's corner past keeper Willy Caballero, but both neither side could find a victor.
Arsene Wenger, Manager of Arsenal looks on prior to kick off during the Barclays Premier League match between Swansea City and Arsenal at Liberty Stadium on March 16, 2013 in Swansea, Wales.
First of all we had Wenger being asked about the trouble between Arsenal fans both during and after the Man City match and his answer reported on the Arsenal website struck me as though he was living in another world. You could see that the team were touched on the confidence front and that the fluency in our game suffered.
But a solitary point left the Gunners in sixth position, seven points adrift of the Champions League places although they do have a game in hand on City who lie fourth.
Against a background of supporter discontent over the form of Wenger's team as the Frenchman decides his future, with a protest outside the ground before kick-off urging the manager to leave his post, Arsenal were nervy from the start.
"We have many games in April, we need to have everyone on board and to work like we did against Manchester City, then we have a chance".
"Guardiola said to achieve top four is a trophy".
Arsenal's Laurent Koscielny is a doubt for Wednesday's London derby after being forced out of the City game at half-time. We dropped two and we've got to improve for next time.
Two banners were held aloft at the final whistle - and both summed up the confusion now surrounding Arsenal and manager Wenger. "Hopefully he can help us in the last games at the end of the season".
"I felt he did give everything today", Wenger said of the Chile forward.
"We went forward and exposed ourselves to counter-attack".
"We played much better in the second half". I don't know how long I am here but I love the club and will do my best.