Marco Reus opened the scoring for Man City in the 62nd minute after Jack Rodwell gifted him the ball in a glorious position.
Robert Lewandowski should've made it 2-0 to Dortmund but inexplicably missed a golden opportunity.
Man City did not look like getting an equaliser until the ball hit Subotic's arm and the referee gave City a penalty. Mario Balotelli slotted home calmly from the spot.
Joe Hart was Man City's best player on the night and had to pull out a late save from Robert Lewandowski to gain Man City the point.