Last month's defeat has left Arsenal sat in sixth in the Premier League, 12 points off Pep Guardiola's side.
"[Sterling] used the naivety of the referee in a very positive way.That's why I said the referees don't work, they don't do their homework".
Wenger said: "I think [Manchester City] are a good side but they are not an unstoppable side".
"That's where the difference is and in big games like that you have to look at the defender and what he's doing, not what the striker is doing".
"They created very little and very little shots on target, just one more than us". "But the referee had an absolutely atrocious impact on the game".
In this game we conceded a penalty that was not a penalty and an offside goal that was an offside goal.
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"I think they are a good side but they are not an unstoppable side".
Wenger is the only manager to have led a team to an unbeaten Premier League campaign, with his "Invincibles" side achieving the feat en route to winning the title in the 2003-04 season.
In a sit-down interview with beIN Sports, Wenger played down City's ability at home while missing his chance to apologise to Raheem Sterling and instead shifting his perspective on Sterling's so-called dive.
'Four or five weeks is a different experience, it's more concentrated but I believe the real experience of managing a team is on a daily basis.
"People always want to predict what will happen in the game".
"Maybe, maybe not. But at the moment only one team has done it".
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