Riyad Mahrez was adjudged to have kicked the ball against his standing foot as he slipped while taking the 77th-minute penalty, which span high into the top corner. "We caused a very good side lots of problems".
FIFA's Law 14 states: "After the players have taken positions in accordance with this (penalty) Law, the referee signals for the penalty kick to be taken".
Manchester City are expected to be one of the most active sides in the transfer market this summer, with Guardiola set to shake up his squad after a disappointing first season in England for the former Barcelona boss.
"We have two games left and it was so important, against the last champions".
"It's not easy to win games in a row".
After dominating before the interval the hosts were hanging on at times in the second half and Mahrez had the chance to rescue a deserved point for last season's champions.
"The first goal was offside", Leicester keeper Kasper Schmeichel, who argued he was distracted by Sterling, told Sky Sports. The first defeat acted as a big leg-up in Leicester's shock march to the Premier League title in 2015/16 season while the second was a struggling Leicester reminding everyone why it is that they won the league in the first place.
They were also fortunate Kompany was at the back to keep his side focused in a nervy closing stages.
Referee Bobby Madley allowed the goal to stand despite the Leicester protests, but the visitor could have no complaints about Manchester City's second seven minutes later.
Liverpool play West Ham United on Sunday. "It was important that we got that goal just before halftime because it raised spirits a bit, especially at halftime when I was talking to the players".
Swansea, revitalised since Paul Clement's appointment as manager in January, moved four points clear of the bottom three after Fernando Llorente and Kyle Naughton scored in a precious win at Sunderland.
Zabaleta came on as a late substitute to help City survive a spirited comeback by Leicester after David Silva and Gabriel Jesus had given them a commanding two-goal lead. We had to work really hard to become a better club but, after nine years, look where we are today.