Mikel Arteta scored the only goal of the game as Arsene Wenger’s side all but ended City’s title hopes and helped maintain their ambition of Champions League qualification.
The Israeli hopes Arsenal can maintain their recent good form despite their defeat against QPR two weeks ago, and finish the season strongly.
He told the club’s official website: "It was a big win and a very important three points in the race for the Champions League spots. Especially against a big side like Manchester City so we are delighted with the win.
"We had a good run before QPR, seven games, and then we had a bad game, so we had to react against a strong team and we deserved the three points because from the first minute you only saw one team on the pitch.
"Not only before the game did Tottenham get a point but Chelsea got three and Newcastle too. Everybody is talking about Chelsea and us but Newcastle are doing so well.
"We had to take three points to open the gap back to five points. It will be very close until the end of the season, we have to continue to play like this."
Robin van Persie is 13/5 to score the first goal when Arsenal take on Wolves with bet365
Benayoun feels the Gunners will face a tough test when they play Wolves next and he thinks Terry Connor's men will scrap for everything when the play Wenger’s side on Wednesday.
"We have a hard game against Wolves, who are in a relegation battle, we have to go there and take the three points,” he said.
"At this time of the season I think every game is a difficult one. Teams will fight for their lives in this league and it is harder to play against them, especially when you play at their ground.
"It will be like this against Wolves. But if we are 100 per cent committed then we will win the game."