The champions of England fell just short on the brink of reaching their second successive Champions League final as the late show from Carlo Ancelotti's newly crowned La Liga winners sealed a historic victory that will see Real Madrid play Liverpool in the final at the Stade de France on May 28.
After an entertaining win in the first-leg at the Etihad Stadium last week, Pep Guardiola's side entered the clash with a 4-3 aggregate lead, which they retained heading into the interval after both sides missed several chances in the opening 45 minutes.
Having been way off their usual, fluid best across the pitch in the first-half, City dominated a large chunk of the second 45 minutes and were rewarded for their efforts when Riyad Mahrez had seemingly put the tie to bed with a convincing finish at the near post past Thibaut Courtois with less than 20 minutes left.
However, the Blues - who saw Kyle Walker hauled off injured in the second-half after Kevin De Bruyne was taken off as well - failed to see the tie through and were punished for their lack of pragmatism by the 13-time winners of the competition, who scored twice late on to send the tie to extra time.
As per a report by James McGrath, Jason Burt and Mike McGrath of The Telegraph, the mood was rather quiet in the Manchester City dressing room following their late collapse in the Spanish capital on Wednesday, instead of players calling out who was at fault for the defeat.
Rodrygo came off the bench for Carlo Ancelotti's men and left the visitors with no answer by notching two quick-fire goals on the cusp of full time before Ederson prevented the forward from completing his treble in injury time.
Karim Benzema bagged his third goal of the semi-final tie from the spot in the first-half of extra time, with City left to rue their mistakes on either side of the pitch over the two legs in yet another Champions League disappointment.
It has been reported since City's midweek loss that the Premier League leaders are eyeing three signings in the summer, with Frenkie De Jong a potential target in midfield should Barcelona be willing to cash in on the Netherlands international owing to the club's financial constraints.
City are expected to secure the arrival of Erling Haaland from Borussia Dortmund, as has been widely reported in recent months, with River Plate forward Julian Alvarez also set to head to the Etihad Stadium at some point in the summer.
Manchester City return to action in the Premier League at the weekend for the first of their final four games of the campaign against Newcastle.