The flying City winger’s second-half strike proved the difference between the two sides after a battling display from Pep Guardiola’s side.
And Sane insisted it was a victory that will load pressure on Jurgen Klopp’s men now they can feel the breath of City on their necks.
“We have put more pressure on Liverpool. We’re just four points behind them, and they know it, too,” he said.
“It was really important to win a game at home against Liverpool. It gives you more confidence to know we are closer and it’s not over already.”
Pep Guardiola had admitted that a win for Klopp’s side would have extended their lead to 10 points and effectively ended City’s title hopes.
But after a rip-roaring night at the Etihad saw the gap reduce to four points, it is game on.
And Sane insisted City’s batting performance has also shown they are prepared to mix grit with their usual silk in defence of their Premier League crown.
“We ran a lot and wanted to fight. We wanted to win the duels – if you don’t win the duels against Liverpool, they create chances,” said Sane.
“The way we ran and fought was a little bit special.
“You need the confidence to play like this. Every team studies how we play, especially in the Premier League and we know how difficult it is to play this way.
“This our way and we want to show we can do it both ways.”
“We are always going to fight until the end, it doesn’t matter what the result is. We always want to score, to show who we are and how we play.”