City's escape into the last 16 seemed unthinkable when they played their penultimate group game two weeks ago.
Liverpool's campaign ended in a 1-1 draw against FC Basel which was not good enough to see them through.
Chelsea's 23-match unbeaten run is in tatters after Newcastle’s Papiss Cisse scored two 2nd half goals.
Liverpool’s Brendan Rodgers was given a vote of confidence on Thursday by the club’s chief.
Goals from Yaya Sanogo and Alexis Sanchez ensured Arsenal a spot into the last 16 of Europe's elite league.
Leo Messi is now the all-time top scorer in Uefa Champions League history with 74 goals.