Pep Guardiola made three changes from midweek with star playmaker David Silva the most notable absentee.
His replacement, Gundogan, made his presence felt after meeting fellow countryman Leroy Sane’s cross from a corner to head home after just 14 minutes played. Gundogan made a ghosting run into the penalty area unmarked and headed home from close range leaving Hugo Lloris helpless.
Guardiola’s men went into the interval on the front foot and were good value for their 1-0 lead at half time, have created 10 goal scoring chances with 5 on target as opposed to the Spurs, who only managed a two shots with neither troubling City goalkeeper Edison.
The Lily Whites came out after the break a much better side, with more fluidity in approach play. Harry Kane came closest with a thumping drive from outside the box which had Edison at full stretch to deny the Englishman.
The London side were unable to make their best spell of possession count after the break before De Bruyne latched onto a Gundogan pass to rifle an unstoppable effort past Lloris to double the home side lead.
Sterling scored two late goals in the last 10 minutes, one a superb team goal and the second of them being rather fortuitous to make it 4-0.
There was still time for Spurs playmaker Christian Eriksen to score a late consolation goal but it meant little with City now 20 points clear of Spurs.