Mikel Arteta's side were on course to keep pace with leaders Liverpool after goals from Gabriel Martinelli and Kai Havertz put them in control at the Emirates Stadium. But the Gunners collapsed midway through the second half as Youri Tielemans' first league goal this season handed Villa a lifeline before Ollie Watkins bagged the equaliser.
Boyhood Arsenal fan Watkins was about to be replaced by Jhon Duran before his 10th league goal this season put a huge dent in the north Londoners' hopes of catching Liverpool. There was an agonising finale for Arsenal as Mikel Merino's late winner was disallowed for handball by Havertz. Second-placed Arsenal are now six points behind Liverpool as their bid for a first title since 2004 continues to splutter.
With Liverpool holding a game in hand on Arsenal, Arne Slot's men are firmly in control of the title race.