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Pep Guardiola's men hosted Wolves at the Etihad on Tuesday evening as they hoped to extend their significant lead at the top of the Premier League table.
City took the lead in the first half after Leander Dendoncker put the ball in the back of his net as he attempted to thwart a Raheem Sterling tap-in at the back post.
Laporte thought he had extended City's lead when Bernardo Silva had flicked the ball into his path.
However, VAR stepped in and ruled that the 26-year-old French centre-back had his arm in an offside position.
Laporte appeared to be onside when the initial cross came in, but the flick from Silva seemed to put his shoulder in a tight offside call.
The latest VAR decision left City fans taking to social media to slam the decision made over Laporte's shoulder being in an offside position.
The decision against Laporte could prove costly as Conor Coady pulled back an equaliser in the 61st minute after heading low past Ederson from a Joao Moutinho cross.
Full-time result: Gabriel Jesus scored a brace and Riyad Mahrez added his name to the scoresheet as Manchester City sealed a 4-1 win over Wolves at the Etihad.
City are now 15 points clear of second-place Manchester United, who return to action on Wednesday with an away trip to Crystal Palace.
Pep Guardiola's title-challenging City side will return to Premier League action on Sunday as they host the Red Devils at the Etihad.
Featured Image Credit: Twitter/Sky Sports
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