The North London club are now in serious danger of falling into second following their defeat at the Etihad.
Should Man City beat like to be relegated Burnley by more than one goal on Wednesday, Pep Guardiola’s side will move into first.
Speaking to BBC Match of the Day after the game, Arteta insisted that his side still have the belief they can win the title.
"At the end it's the result we came to conquer. We did a lot of things right to take the game where we wanted.
“We had the best chances in the game but we didn't put them away and that's the reality," he said.
On whether the belief is still there: "100%. I said to the boys we have to look in the mirror and the team we played in the moment, the history they have, to come back from a goal down. There's a lot of things to take. The difference was in both boxes that's for sure."
On changing his approach: "Every game is a different approach. Need to evaluate the state of the team. We are missing some big big players. We need them back as soon as possible because we need to be stronger and better.
"The Premier League starts again almost. They have a game in hand, we are three points ahead, five games to play so game on."