The top four race was blown wide open as Arsenal fell to a disappointing loss at the Tottenham Hotspur Stadium on Thursday night.
Mikel Arteta's side are chasing their first top four finish since the 2015/16 season under Arsene Wenger.
Goals from Harry Kane and Son Heung-min were enough to defeat 10 man Arsenal.
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Story of the match
Portuguese defender Cedric Soares brought Son down with a nudge in the back inside the penalty area just after the 20 minute mark, with Spurs skipper Kane smashing the ball into the bottom corner to give Tottenham Hotspur the lead.
With tensions rising in the derby, emotions came to a boiling point, with Rob Holding shown a second yellow card in the 33rd minute after a coming together with Son.
Not minutes later Kane bundled in his second goal of the game, heading in from close range after Rodrigo Bentancur flicked on a Tottenham corner towards the lurking striker at the back post.
Straight after the half time break Spurs added a third to their tally, with Kane being able to roll the ball back to Son from inside the box, which the Korean smashed into the back of the net.
Emerson Royal came close to a fourth, but was denied by a good save from Arsenal keeper Aaron Ramsdale.
The result means the Gunners remain one point ahead of Antonio Conte's side, with the race for the Champions League places being blown wide open.
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What next?
Arsenal face a trip to the North East on Sunday where they take on Newcastle, followed by their final game of the season at the Emirates Stadium against Everton.
Tottenham on the other hand face Burnley and already relegated Norwich in their final two fixtures of the season.