Manchester City will face Arsenal again at the weekend just a few days after their League Cup defeat.
City fought valiantly into extra time but succumbed to a 1-0 loss when Arsenal's Stina Blackstenius goal brought an end to their Continental Cup run in the 93rd minute.
The result abruptly halted their unbeaten run of 16 games in all competitions and their defence of the Conti Cup title. Manager Gareth Taylor said: “I think we made a good defence of the crown by getting to the semi-finals and scoring 18 goals in the competition and not conceding anywhere at all in normal time, it took extra time for us to unfortunately concede but, I’m really proud of the players in the defence of the title.