Aguero, who opened the scoring after just 46 seconds, netted all three from close range as City bounced back from their midweek defeat Newcastle with a convincing display at the Etihad Stadium.
Arsenal did pose some awkward questions after finding a quick equaliser through Laurent Koscielny, but two more from Aguero either side of the break put the result beyond doubt.
There was an element of controversy over Aguero's third after the ball struck his arm as he bundled it in, but it was not deemed deliberate.
City eased through the final stages to put the onus on Liverpool to respond at West Ham on Monday. Re-live the action in the live blog below:
Welcome to The Independent's live coverage of this afternoon's main event, Manchester City vs Arsenal.
Pep Guardiola has never won a top-flight title having been behind in the race this late in the season but he has to now, here's Mark Critchley's preview of this must-win game for Manchester City.
Man City 0 - 0 Arsenal
Arsenal start the match looking for their first away win in the Premier League since November.
1 min: Man City 1 - 0 Arsenal - Aguero
Man City attack from the left wing but Arsenal take possession of the ball. They try to play out from the back but Laporte comes forward and wins the ball, he slots it into the middle of the box and Aguero dives forward and heads it into the back of the net.
6 mins: Man City 1 - 0 Arsenal
Bernardo Silva wins a corner for Man City. Arsenal are defending really deep, Gundogan puts the ball into the box, Arsenal head it out to Sterling who let's one fly, Leno dives to his left and pushes it wide. Man City look hungry for more goals.
9 mins: Man City 1 - 0 Arsenal
Bernardo finds Aguero who finds Gundogan who shoots! It goes wide but Aguero was offside anyway.
Arsenal give away a free kick to the right of the box, De Bruyne whips it in and finds Laporte who heads it into the back of the net!
But he's offside.
11 mins: Man City 1 - 1 Arsenal - Koscielny
Arsenal win a corner after Kyle Walker puts the ball out of play. Torreira puts the ball into the middle of the box, Monreal flicks it on and Koscielny heads it home. All square at the Etihad, we could be in for a goal fest.
15 mins: Man City 1 - 1 Arsenal
Kolasinac makes a poor pass and gives Man City the ball back, City make use of it to get Sterling into the box on the left but he's dispossessed and Arsenal can clear the ball.
18 mins: Man City 1 - 1 Arsenal
Laporte wins another corner for City. It falls to Sterling who hits it on the volley but he doesn't connect well and his shot is deflected. Arsenal scramble to clear the ball but only get it as far as Otamendi who shoots and forces Leno into the save.
Join our new commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies