Pep Guardiola’s side had come through the group stages unscathed but failed to reach the quarter-finals after conceding four times in a haphazard defensive display.
City have been fast starters in this competition and for the fourth game running, they opened the scoring inside the first 10 minutes.
Captain Bernardo Silva swept home from close range after the opposition defenders failed to clear, but the Al-Hilal players were left fuming as Rayan Ait-Nouri appeared to handle the ball in the build-up.
Goalkeeper Bono made big saves to deny Savinho and Ilkay Gundogan from close range, before showing sharp reflexes to tip Josko Gvardiol’s header over the crossbar.
At the other end, Al-Hilal found little joy in the opening 45 minutes, but just 44 seconds into the second half, Brazilian striker Marcos Leonardo was in the right place to head in the equaliser.
City were reeling when former Barcelona man Malcom ran clear to coolly convert and give Al-Hilal a shock lead on 52 minutes, before Erling Haaland restored parity just three minutes later by poking in from a corner.
With time running out in a thoroughly entertaining contest, Manuel Akanji flicked a header against the post and Haaland saw his follow-up effort sensationally cleared off the line by Ali Lajami.
The match went into extra-time and Al-Hilal thought they had won it when former Chelsea defender Kalidou Koulibaly powered in a header in the 94th minute, but substitute Phil Foden squeezed home a volley from an acute angle to keep City alive.
But Marcos Leonardo was the hero as he converted at the back post eight minutes from time to deliver a monumental result for the 2021 AFC Champions League winners.
What was the main talking point?
The revamped Club World Cup has been criticised in some parts, but this contest served up an epic encounter – one for the night owls in the UK, as it finished at 04:45 BST – which will go down as one of the most memorable games of the tournament.
It was a result to reverberate around football, as an ambitious Arab side aiming to challenge the elite dumped out a Premier League giant on the global stage.
City went ahead and failed to take their chances in the first half and then trailed for the first time in the competition after an extraordinary six-minute spell at the start of the second half. They went to extra time, but could not recover from Marcos Leonardo’s 112th-minute goal. Source: https://www.bbc.com/sport/football/live/clynqpvg783t
