United's under-18s fell behind when Daniel Sturridge opened the scoring with a header on 16 minutes. The junior Toon hit back to reduce the overall deficit 10 minutes before the break as Nicky Deverdics slotted home his first goal in almost two years from close range after a Lewis Marr long throw.
Academy coach Kenny Wharton : "It was disappointing because we have come so close. We were actually the better team for long periods. It was the first game which cost us really and that is frustrating because over the two legs we have been as good as Man City. People will say we have a much younger team but that was not the reason we went out.
"We are as good as Man City but in the first game we conceded two goals after going 2-1 up and looking back that could have been avoided. Even at 3-2 down in the first leg we could have clawed it back to 3-3 or even won 4-3 with the chances we created and that puts a whole different complexion on the second leg."
UNITED: Forster, Cowan, Deverdics, Huntington(c), Marr, Lua Lua (Doninger 58), Francis (Grieve 82), Godsmark (Troisi 46), Cavener, Critchlow, Carroll. Unused subs: Little, Cook.
MAN CITY: Matthewson, Obeng, Logan, Williamson, Breen; Williams, Marshall, Johnson(c), Moore; Etuhu, Sturridge (C Evans 73). Unused subs: Daly, Vadon, McDermott, Mouritsen.