The “big four” are so called for a reason, as Aston Villa are starting to find out. Having looked on course for a top-four finish for much of the season, Martin O’Neill’s team are steadily allowing their grip on a Champions League qualifying place to slip, defeat last night giving Arsenal further encouragement in what is fast becoming a compelling test of nerve.

Villa would have moved eight points clear of Arsenal had they beaten Stoke City on Sunday, rather than squandering a two-goal lead. Instead, they find themselves only three points ahead of the North London club with an ominous run of fixtures to come.

Take nothing away from Manchester City, who, inspired by the imperious Shaun Wright-Phillips and Stephen Ireland, thoroughly deserved this victory, their fifth in succession at home in the Barclays Premier League, but Villa bore all the hallmarks of a team buckling under pressure, as one win in five league games reflects.

Villa’s next four matches are against Tottenham Hotspur, Liverpool, Manchester United and Everton, games that could make or break their season and ones that will put their character firmly to the test. “I accept that we might be a bit naive and those sides that are there every year have a bit more knowhow, but that should not stop us from relishing the challenge,” O’Neill, who takes his players to Dubai today for a short break, said.

“We have tough matches coming up, but if that doesn’t excite you, you shouldn’t be playing. We deserve to be in this position and it would be a shame to throw it away without a fight. You have to recover quickly from adversity and I think we are capable of doing it.”

City, of course, intend to be a Champions League club themselves and if they continue to perform in this manner, it probably will not be too long before they are. Wright-Phillips capped a wonderful display when he exchanged a neat one-two with Ireland late on to make it 2-0, after Elano had scored from the penalty spot in the first half when James Milner brought down Wright-Phillips.

Arsenal’s 3-1 win away to West Bromwich Albion on Tuesday evening appeared to be on Villa’s minds during the first 45 minutes, when they were played off the park despite having won their previous seven away games in the league. Their anxiety eased somewhat in the second period, but City were an example of grit and determination. In Richard Dunne, they possessed an impenetrable brick wall at the back.

Villa improved as the game went on, O’Neill throwing caution to the wind, and Ashley Young and Gareth Barry had fine efforts tipped aside by Shay Given.

The home team were without the injured trio of Robinho, Craig Bellamy and Micah Richards but their football, for the most part, was intoxicating, deft movement and pinpoint passing bamboozling Villa. They were no less adept in defence, either.

Wright-Phillips should have scored in the 22nd minute with the move of the match, Nigel de Jong feeding Ireland, whose sublime first-time pass presented the England winger with a great opportunity that he scuffed wide. A minute later, though, he made amends, winning the penalty from which the impressive Elano scored.

“It was one of our best performances of the season,” Mark Hughes, the City manager, said. “We exhibited many qualities and the only disappointment is that we have not been doing that more away from home.”

Manchester City (4-2-3-1): S Given — P Zabaleta, R Dunne, N Onuoha, W Bridge — V Kompany, N de Jong (sub: G Fernandes, 47min) — S Wright-Phillips, Elano (sub: V Bojinov, 81), S Ireland — F Caicedo (sub: C Evans, 74). Substitutes not used: J Hart, D Vassell, J Garrido, G Berti. Booked: Caicedo.

Aston Villa (4-4-2): B Friedel — C Cuéllar (sub: C Gardner 87), Z Knight, C Davies (sub: J Carew, 46), L Young — J Milner, S Petrov, G Barry, A Young — E Heskey, G Agbonlahor. Substitutes not used: B Guzan, M Harewood, N Delfouneso, N Reo-Coker, N Shorey. Booked: Milner, Barry.

Referee: C Foy.