Referees' chief Howard Webb admitted Nathan Ake's goal against Fulham should have been disallowed for offside in their 5-1 victory on Saturday.
Ake's header regained City's lead to put them 2-1 up on the stroke of half-time but Fulham complained about Manuel Akanji being stood in an offside position and appeared to affect Bernd Leno in the goal.
After a VAR review of the incident, the goal was given and City went on to win the match comfortably by four goals.
Following the game, Erling Haaland - who scored a hat-trick - said he thought the goal should have been ruled out for offside, while Fulham boss Marco Silva also continued his complaints and said it should have been 'impossible' to allow the goal to stand.
The Premier League aired an episode of 'Match Officials Mic'd Up' on Sky Sports on Tuesday, showing viewers some VAR decisions that have been made through the early part of the season.
On the show, Professional Game Match Officials Limited chief Webb admitted the officials got the decision wrong with Ake's goal and that it should have been ruled out for offside.
He said: 'From the outset, I want to say this should have been disallowed.
'These are not always easy to call because you are trying to get two pieces of information together. Is the player in an offside position, which official is in a good position to see, and what consequence was there of the player being in that position and how it impacts the opponents?
'It certainly appears that Akanji has an impact on Bernd Leno, the goalkeeper seems to hesitate. The officials on the field gave the goal, they did not see the obvious action that impacted Leno's ability to play the ball.
'They did not feel it was clearly impactful on Leno's ability to play the ball but when
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