The Reds had been long odds-on before losing 2-0 to Chelsea, which allowed City to close the gap to three points with victory at Crystal Palace. City have three games left to Liverpool's two, and a superior goal-difference mean's they're now in the driving seat and priced as 4/5 favourites (from 5/1), with Liverpool out to 5/4 from 1/6.
"Even a point would've been a good result for Liverpool but defeat to Chelsea hands the initiative back to Manchester City," said Sky Bet's Sandro Di Michele.
"There's still plenty of room for another twist, though, as City head to Everton next Saturday while Liverpool won't find things easy against Palace either.
"That being said, we bet 16/1 Chelsea as they will still need both City and Liverpool to slip up which doesn't look likely."
At the other end of the table, the picture is looking increasingly clearer after Sunderland continued their resurgence with a 4-0 win over Cardiff.
The result leaves Cardiff in big trouble and just 1/14 for relegation, while Norwich are 1/10 having lost at Manchester United and with games against Chelsea and Arsenal to come, they're expected to remain in the relegation zone.
Fulham's failure to convert a 2-0 lead into three points against Hull leaves them odds-on at 1/4, whereas Sunderland are out to 3/1. The other team still in realistic danger appears to be 15/2 shots Aston Villa following their defeat at Swansea.