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Balotelli will grab some headlines for his cool penalty, but Joe Hart deserves all the plaudits for a stunning display of goalkeeping which kept his side in the match.
City were very, very lucky to be awarded a penalty, as Subotic was not looking at the ball and it was blasted against his arm by Aguero from point-blank range.
Dortmund's players surround referee Pavel Kralovec at the final whistle and Jurgen Klopp comes out to make his feelings known, before shaking hands.
Full-time at the Etihad. What a game. City will be very grateful to have taken a point.
Kolarov drives it into the wall and Dortmund break.
Reus is booked for protesting.
Free-kick for City in a decent position out on the right flank.
Another superb stop from Hart! The City keeper dives full length to keep out Lewandowski's stinging drive which was arrowing towards the bottom corner.
Four added minutes will be played.
Dortmund go back on the attack and Reus volleys over from a tough angle at the far post.
GOAL!!! Balotelli steps up and keeps his cool to slot home!!
Very harsh on Dortmund. Aguero's shot hit Subotic's arm from point-blank range.
PENALTY FOR CITY!!!
Kehl on for Gotze.
Great save from Weidenfeller!! The Dortmund keeper is at full stretch to push away Aguero's header.
Hart is called into action again to fist away a fizzed free-kick from Schmelzer.
Yaya Toure talks himself into a yellow card by disputing one of Kralovec's decisions. Not been a good night for him.
Time running out for City. They haven't been able to create the openings they did in the first half, but still look vulnerable at the back.
Dortmund take off Gundogan, with Grosskreutz coming on.
Balotelli comes on for the final 10 minutes, replacing Clichy. I doubt he'll be playing at the back.
Corner comes to nothing. Gundogan is up and ready to rejoin the fray.
Gundogan goes down and stays down after taking a knee in the back from Zabaleta. The referee wants play to go on and City are happy to oblige. Klopp and his players are furious as they put it out for a corner, but the ref made the call.
Balotelli is imminent.
So close to 2-0 for Dortmund!! Gundogan takes out the entire City defence with a superb pass from the right flank, which curls into the centre and is met by Lewandowski, but he somehow puts it wide of the post. Big let off for City.
Lewandowski curls in a shot from the left corner of the box, but it is always going over Hart's bar.
First change for the visitors, as Felipe Santana comes on for Hummels, who is still feeling the effects of his fall earlier in the half.
Aguero goes down after a challenge from Piszczek, but the referee deems it to be a fair shoulder charge.
City have half a chance as Kolarov pokes the ball through to Aguero. He attempts to square it to Dzeko as the keeper comes out, but the defence clears.
Big 20 minutes coming up for City now. They can ill-afford to have nothing to show from their opening two Champions League group games. Defeat would leave them pointless alongside Ajax at the foot, while Dortmund and Real would be on six.
Another woeful pass from Toure goes straight to Bender in midfield. He really has not been at his best tonight.
It's a good job City have Joe Hart in goal tonight. The England keeper produces another superb stop to tip Gundogan's curling effort over the bar, just as it looked bound for the top corner.
City's tactical switch to go three at the back, which was brought about in part by Nasri's injury, is not going well so far.
SAVE FROM HART! Lewandowski slices the City defence apart to find Reus, but this time Hart is able to make the block. Could have been curtains for the home side.
Even Hart could do nothing about that one. Rodwell played a pass blind across the back four and Reus burst forward to run through into the box and find the back of the net. Hart got a hand to it, but could not keep it out.
GOAL FOR DORTMUND!!! Marco Reus breaks the deadlock!
Aguero looks to be in behind the Dortmund defence down the left after Silva's deft ball, but the flag goes up again.
Hummels is inches away from getting on the end of a free-kick into the box and takes a few seconds before getting to his feet.
Kolarov is clattered by Blaszczykowski out on the touchline and can have no complaints about that caution.
City's corner falls to Kompany, but he is unable to get his shot away cleanly after receiving possession with his back to goal and Dortmund clear.
It is the limping Nasri who makes way for Kolarov.
Great cross from the right from Zabaleta has Weidenfeller flapping for once, but Gotze is back to head behind.
City are about to send on Kolarov.
Another great save from Hart! Gotze is again denied by the City keeper, with his curling shot pushed around the post after being found by Piszczek.
Great challenge from Zabaleta to deny Reus on the edge of the City box just as he was preparing to shoot from Lewandowski's pass. Error from Nastasic gave Dortmund the ball.
Good skill from Dzeko as he gathers Toure's pass on his chest before shooting with one movement from the edge of the area, but Weidenfeller is always comfortable.
Early days in the second half, but the intensity of the first is not quite there yet.
Awful pass out of defence by Kompany goes straight to Reus, but his attempted through-ball is cut out by the City captain.
Early shot from Blaszczykowski, with City napping after a throw, but Nastasic is on hand to block.
Dortmund get the second period under way.
Dortmund are already out on the field, while City are now ready to join them having waited in the tunnel for Yaya Toure, who has not had his best game so far.
Half-time stat from Opta: Joe Hart has now made 13 saves in the Champions League this season, only Cluj's Mario Felgueiras (14) has made more.
The whistle goes for half-time. I have no idea how it is goalless here. Great game so far, let's hope for more of the same after the break.
Another great save from Hart! Toure gives the ball away in midfield and Dortmund break. Gundogan plays a one-two and then is denied by a splendid stop from the City keeper.
OVER THE BAR! Zabaleta is found in space on the right and puts in an excellent cross, which is over the head of Dzeko and met by the foot of Silva less than six yards out, but he cannot keep it down and it goes way over the top.
Reus takes the free-kick from midway inside the City half but Kompany heads clear. Driven cross from Piszczek is just ahead of his team-mates on the edge of the six-yard box.
Zabaleta penalised for clambering on the back of Lewandowski. Never going to get away with that.
After being cut open twice in quick succession, City are again keen to keep possession to quell the Dortmund attacks.
OFF THE BAR!! Hart is called into action once again with an even better save, tipping another driven effort from Gotze up and onto the frame of the goal.
Tremendous save from Hart to keep City on terms. Gotze broke clear and looked certain to score, but the keeper blocked well.
Great tackle from Zabaleta to deny Schmelzer as he shapes to shoot in the City box. Dortmund remain a significant threat on the counter-attack.
Flag up again against Dzeko as he breaks in behind the defence from a long ball forward. Correct call this time.
Dortmund go back on the attack, forcing a corner which Hart can only push away. The ball eventually drops to Subotic outside the area and he lets fly with a powerful effort which has Hart diving away to his right and happy to see it whistle beyond the post.
Sergio Aguero unleashes one from 25 yards out after great play from David Silva, but Weidenfeller is equal to the task, tipping it over the bar for a corner, which comes to nothing.
Javi Garcia limps off holding the top of his right thigh. Rodwell joins the fray.
Injury problem for City with Javi Garcia down. Jack Rodwell is set to come on.
Kompany had to get that tackle exactly right as Blaszczykowski burst into the area. Didn't look too rusty here.
Gundogan attempts an ambitious first-time effort from outside the box as the ball breaks to him, but it is well over the bar.
Another offside decision goes against City, with Aguero too far advanced on the left after being found by Silva.
Reus' free-kick is fisted away by Hart and when the ball comes back in Lewandowski can't get any real power on his header.
Vincent Kompany goes into the book for pulling back Reus.
Another important save from Weidenfeller as Silva cuts in from the right and feeds Aguero, but the Argentina striker's shot is kept out by the keeper's legs.
Dzeko is flagged offside as he breaks in behind the Dortmund defence. He misses the target, but replays show he was on.
City are seeing more of the ball now, and their possession has taken some of the early sting out of Dortmund.
Gundogan is ticked off by the referee after attempting to move a City free-kick back a few yards.
Javi Garcia attempts to switch the play from left to right, but overhits his pass out towards Silva.
Sir Alex Ferguson, sitting in the Etihad Stadium stands, fails with his attempt to stifle an enormous yawn.
The visiting fans are chanting and jumping in unison - an awesome sight and sound at one end of the stadium, which is a sea of yellow and black.
Aguero looks to find some space down the left, but Piszczek and Hummels combine to shepherd him away.
City attempt to keep possession, but Toure's ball into Nasri is knocked out for a throw by the Frenchman, much to Mancini's annoyance.
The heavens have opened in Manchester, which will make a slick surface even quicker.
Great one-two between Schmelzer and Blaszczykowski almost opens City up, but they hack clear. It'll be superb if the pace of this game can continue for the full 90 minutes. Breathless stuff at the moment.
Lovely raking ball from Toure finds Zabaleta out on the right, who feeds Silva. Quick feet from the Spaniard and he opens up the visiting defence to find the full-back, but Dortmund are able to get a foot on the ball before Silva is penalised.
Clichy releases Nasri down the left flank, but his clipped cross is cleared by the Dortmund defence.
OFF THE POST!! Dortmund break towards the City defence and Gotze fires in a shot which Hart does very well to turn onto the outside of the post.
Hummels has to show his strength to hold off Dzeko in the box before clearing his lines.
Now Hart has to be alert to come off his line and gather the ball before Gotze gets there.
Two chances in quick succession for City. First Aguero is played in behind the defence only for Weidenfeller to come off his line and block. The home side keep the pressure on, but Zabaleta blazes well over when well placed.
Poor touch from Toure in the centre of the park give Dortmund the ball, but City's defence stands firm and Silva brings it away.
Chance for Lewandowski around 12 yards out in the Manchester City box as Piszczek swings in a cross, but his header is well over the bar.
Dzeko's first touch from a Silva pass is loose, but he attempts to win it back, only to be penalised by Kralovec.
Great atmosphere in the Etihad Stadium too.
Really good early pace to this game, with both City and the German champions keen to attack.
Tight back-pass from Kompany puts Hart under unnecessary pressure, but the England goalkeeper hacks clear.
Briliant start from City as Nasri forces an excellent save out of Weidenfeller with a snap-shot from the edge of the box after good work from Dzeko.
City get the contest under way.
Impressive following from Dortmund are making themselves heard in the Etihad as the Champions League theme rings around the stadium.
The two teams are in the tunnel and ready to make their way out into the Manchester night.
After that enthralling insight, I can't wait for the game to start...
Asked if they have to win tonight, Mancini replied: "We want to win."
Mancini speaks to Sky Sports to explain his selection of Edin Dzeko: "I hope he will score two goals."
Rival managers Jurgen Klopp and Roberto Mancini are having a cordial chat pre-match on the sidelines, which ends with a friendly handshake. Let's hope we have the same at full-time.
The two teams are going through their pre-match warm-up routines on the Etihad surface, which looks as pristine as ever.
Scott in Stockport says: "3-1 City, Aguero to score."
Eli Ward, originally from Manchester but now in Bucks, writes: "I have a feeling this is going to be a goal-fest. City not great in defence, Dzeko brimming with confidence and Dortmund always happy to give it a go. A great match tonight. 4-2 to City. Silva to get on the score sheet to boost his confidence too."
@AkshetS (the proud holder of a Legoland driving licence?) reckons it will be 1-1 tonight.
Tonight's referee is Pavel Kralovec from the Czech Republic.
Borussia Dortmund subs: Langerak, Kehl, Leitner, Grosskreutz, Schieber, Felipe Santana, Perisic.
Borussia Dortmund starting XI: Weidenfeller, Schmelzer, Hummels, Subotic, Piszczek, Bender, Gundogan, Blaszczykowski, Gotze, Reus, Lewandowski.
Man City subs: Pantilimon, Lescott, Milner, Kolarov, Rodwell, Tevez, Balotelli.
Ian Ashman, an exiled City fan living in Spain, says: "This is going to be a tough cookie for City. I can see them edging this 2-1 with goals from Yaya and the big Bosnian Edin Dzeko."
Vuk Milicevic says: "Here's my two cents worth on the game: Dortmund to win and my Serbian comrade Subotic to score the only goal."
"UEFA must find the thin line between sponsorship and excessive back-door funding - they must show strength to expel big clubs," he said. "No tycoon should be allowed to pump crazy money into a club with sponsorship from five companies he controls. If that happens, financial fair play will fail."
Borussia Dortmund chief executive Hans-Joachim Watzke managed to up the ante before tonight's game with his claims clubs like Manchester City should be 'expelled' by UEFA.
Manchester City starting XI: Hart, Zabaleta, Kompany, Nastasic, Clichy, Garcia, Y Toure, Nasri, Silva, Aguero, Dzeko.
@Richy_Bakes has also been in touch, and is tipping a 2-1 victory for Man City.
Regular correspondent Gabriel Sutton writes: "I get a feeling City fans expecting an easy win tonight could have a surprise in store for them. Dortmund won the Bundesliga in style last year, they are a good team so I'm predicting a close match. City, without a clean sheet so far this season, aren't without their defensive problems so I'll say 2-1 to the Germans, Lewandowski to get a goal if he plays."
Our esteemed colleagues at Sky Bet have a host of markets available on tonight's clash, with Man City available to back at 5/6, the draw on offer at 13/5 and Dortmund a 16/5 shot.
Opta stat No.5: Manchester City allowed the opposition more shots on target against them than any other team on Matchday One (12).
Opta stat No.4: Dortmund have won two and lost five of seven trips to England in European competition, and have lost the last three in a row.
Opta stat No.3: Dortmund have won none of their last five away games in Europe, losing all three of their group stage road trips last season.
Opta stat No.2: City have won three and drawn one of four home games in Europe against German opposition, but overall they have won four and lost four of nine meetings with teams from the Bundesliga.
Opta stat No.1: Manchester City have only lost one of 34 European ties on home soil (W25 D8 L1).
Here's a few stats from our friends at Opta prior to kick-off.
Roberto Mancini's men suffered an agonising last-gasp defeat away to Real Madrid on Matchday One, while Dortmund triumphed 1-0 at home to Ajax.
If you want to get in touch and have your say on tonight's contest them drop me a line to firstname.lastname@example.org or via Twitter @skysportsrobp and I'll publish a selection of the best prior to kick-off.
Good evening and welcome to our live and interactive text commentary on tonight's UEFA Champions League D meeting from the Etihad Stadium.