Gareth Barry put the hosts ahead in the 14th minute, Carlos Tevez claimed he had got the faintest of touches on Micah Richards' header seven minutes after the interval and the Argentinian converted a penalty.

Considering Liverpool regard City as their main rivals for a place in the top four the result could prove to be hugely significant - even this early in the season.

However, City boss Roberto Mancini was wary of reading too much into the outcome.

"I thought we played well. We need time to gel and improve because we were missing four or five important players," he said.

"But the team played with a good mentality. If they play with a good mentality I think we can beat every team.

"We beat a strong team like Liverpool, who can fight for the title.

"This win helped us believe in ourselves and this is important."

The match was Sheikh Mansour's first visit to Eastlands, having taken over almost two years ago, and Mancini was congratulated by him after the game.

The Russian hit-man believes that the London side must improve on their performances against their title rivals in order to win the Premier League this season.

Speaking to Sky Sports News, he said: "My opinion is if you look at the table then we were close but when we met Chelsea and Manchester United they beat us.

"I would like to see this season [how] we will manage to fight against big teams."

Arshavin also backed the young players in his squad to come good this season.

"All the young players have experience now.

"Of course, every one of them has talent," Arshavin stated.

According to the Guardian, the 30-year-old had refused to play for Sevilla in their first-leg Champions League play-off against Braga in Portugal, as he was trying to avoid becoming cup-tied and risking a transfer to Arsenal.

Sevilla's coach, Antonio Alvarez, said: "I didn't like the fact that Squillaci didn't want to play but the circumstances turned out that way."

Apparently the defender had been named in the lineup, only to be suddenly withdrawn, said Sevilla defender Julien Escude.

"When the coach gave his team talk, Sebastien was starting," Escudé said. "Then, I do not know what happened, with the coach or the sporting director, but there was a change in the line-up.

"Later, we knew Sebastien refused to play. I was surprised."

Squillaci himself was unperturbed by any accusations, and said that once he knew Arsenal boss Arsene Wenger was interested in him, the decision to leave La Liga for the Premier League was easy.

The Catalans have reportedly made a £12million offer for the Argentina captain which may also include Alexander Hleb as a makeweight.

However, that falls way short of Liverpool's estimation of what the player, signed from West Ham for £18million three-and-a-half years ago, is worth.

Hodgson was forced to drop the 26-year-old for last night's 3-0 defeat at Manchester City after admitting the player had been affected by the interest from Spain.

But the 62-year-old insists Mascherano will not be allowed to leave for anything other than his full market value, which the Anfield club believe is nearer £24million.

"Unfortunately the fee the club thinks is the correct fee and the fee we are being offered are very far apart," said the Englishman.

"Unless that can be resolved he might be unhappy for a long time to come.

The Argentina captain was omitted from the squad for the 3-0 Barclays Premier League defeat at Eastlands after becoming distracted by a bid, believed to be £12million, from Barcelona.

Hodgson rejected suggestions the 26-year-old had refused to play, instead insisting he chose to drop the combative midfielder for the sake of the team.

"Javier Mascherano is not in the right frame of mind to play the game because his head has obviously been turned by the offer from Barcelona," said the Reds manager.

"This matter has developed over the last couple of days. Unfortunately the fee the club thinks is the correct fee and the fee we are being offered are very far apart.

"Unless that can be resolved he might be unhappy for a long time to come.

"But I don't really want to get involved in it. The discussions between Barcelona and the club are being held at high club level and as a result I don't want to start saying things which may or may not be true.