Bukayo Saka and the player who replaced him as a substitute, Gabriel Martinelli, scored goals in the second half to consign Newcastle, the world's richest club after the Saudi take-over, to a seventh loss of the season.
The win lifted Liverpool into second place, four points behind leader Chelsea in the Premier League. Arsenal remained at the fifth position.
Arsenal went into the international break at fifth place with 20 points from 11 games in the Premier League.
Tottenham vs West Ham and Liverpool vs Leicester City fixtures headline League Cup draw.
Goals in the opening 18 minutes by Gabriel and Emile Smith Rowe put Arsenal in command before Aaron Ramsdale took center stage at the King Power Stadium.
Manchester City's four-year reign as the League Cup titleholder is over.
Chelsea's Reece James netted the penalty shootout as his team advanced to the quarterfinals on Tuesday.
It was Thomas Partey's first goal in Arsenal colours as the win lifted Mikel Arteta's side to ninth place in English Premier League with 14 points.
Hailed as a club hero, Vieira spent nine seasons at Arsenal under Arsene Wenger from 1996-2005 and won three EPL titles and four FA Cups with the Gunners.
The UEFA Appeals Body has declared today the proceedings against Real Madrid, Barcelona and Juventus null and void as if it had never been opened.
Emile Smith Rowe, Pierre-Emerick Aubameyang and Bukayo Saka's goals inside 34 minutes is the first time Arsenal scored three goals so quickly in an EPL north london derby.
In the fourth round, West Ham will take on Manchester City while Chelsea, who beat Aston Villa 4-3 on penalties, face Southampton.
Martin Odegaard's first-half free-kick gave Arsenal the edge at Turf Moor and they held on for a hard-fought three points to further ease the pressure on Mikel Arteta.
If Merseyside rivals Everton failed to beat Aston Villa in the late kick-off, Jurgen Klopp's Liverpool will retire the night as sole leaders in England.
Willian, 33, reached an agreement hours earlier to cut his contract with the English Premier League club two years early
The loss at Manchester City has left Arsenal with three losses without scoring at the start of the season for the first time in its history
Premier League, Bundesliga, La Liga, Ligue 1 and Serie A actions continue. Here's a look at all the Saturday fixtures
Check match and telecast details of Manchester City vs Arsenal football match. City are unbeaten in their last 11 league games against Gunners
Congress leader Rahul Gandhi arrives at Parliament during its Winter Session, in New Delhi.PTI Photo/Kamal Singh
Union Agriculture Minister Narendra Singh Tomar during the Winter Session of Parliament, in New Delhi.PTI Photo/Kamal Singh
Union Commerce and Industry Minister Piyush Goyal with Parliamentary Affairs Minister Pralhad Joshi during the Winter Session of Parliament, in New Delhi.PTI Photo/Kamal Singh
Congress leader Anand Sharma interacts with AAP MP Sanjay Singh, during the Winter Session of Parliament, in New Delhi.PTI Photo/Manvender Vashist
TMC MP Nusrat Jahan during the Winter Session of Parliament, in New Delhi.PTI Photo/Manvender Vashist
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For India’s manual scavengers, mere existence is a protest, because they need to fight just to reclaim their humanity and dignity.
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