(CNN) -- Manchester United's lead over neighbors Manchester City in the English Premier League was cut to just three points after being held to a 4-4 draw by Everton Sunday.
City later beat Wolves 2-0 to send the Black Country club down and boost their chances of a first English top-flight title in 44 years.
United led 3-1 and were 4-2 ahead at Old Trafford with seven minutes of regulation play remaining with Everton mounting an astonishing comeback.
The two leaders face each other at City's Etihad Stadium on Monday week with United manager Alex Ferguson admitting they must avoid defeat.
"We need to get a result now at the Etihad and there's no reason we can't do that," he said.
"There's been the expectancy from City that it could be their decider -- it's our decider too."
He had watched his team in an eight-goal thriller as Everton took the lead through former Glasgow Rangers striker Nikica Jelavic on 33 minutes.
But United leveled before halftime as Wayne Rooney scored against his old club from a Nani cross.
The champions looked headed for a vital three points when Danny Welbeck and Nani put them 3-1 ahead with fine goals by the hour mark.
But Everton, beaten by city rivals Liverpool in the FA Cup semifinal last week, did not lie down and Marouane Fellaini's first time shot cut the lead to 3-2.
Welbeck set up Rooney for his second on 69 minutes to re-open the two-goal lead and Patrice Evra hit the post with a header as United pushed forward.
But the visitors hit back with Jelavic scoring his second before South Africa's Steven Pienaar put away Fellaini's cross to make it 4-4 with only five minutes left.
"We came here to win the game because we've felt hard done by lately, and the players didn't half put a show on today," said Everton manager David Moyes.
In the late kick off, City took full advantage at Molineux against rock-bottom Wolves with Argentina forward Sergio Aguero putting them in front after 27 minutes.
Wolves, who needed to win to stay in the Premier League, battled hard in the second half but Samir Nasri's goal 16 minutes from time made the game safe for Roberto Mancini's title challengers.
In Sunday's other EPL game, Liverpool's appalling league form continued with a 1-0 home defeat to West Bromwich Albion.
Peter Odemwingie's goal gave visiting manager Roy Hodgson, sacked last season by Liverpool, a satisfying victory.
In Serie A, Juventus took a step nearer the title with a 4-0 victory over Roma on Sunday after AC Milan had been held to a 1-1 draw at home to Bologna.
It was Juve's sixth win in a row and gave them a three-point lead at the top with five games left.
Arturo Vidal scored twice for Juve with Andrea Pirlo and Claudio Marchisio also on target.
Milan fell behind as Gaston Ramirez gave Bologna a first half lead and the hosts then had Daniele Bonera sent 10 minutes from time.
But Zlatan Ibrahimovic rescued a point for Milan to keep them in the title race with a late equalizer.