Goals from Ilkay Gundogan and Fernandinho decided a fixture which at one point looked in danger of being postponed as snow fell relentlessly.
With Burnley's clash against Tottenham Hotspur falling foul of Storm Arwen, David Moyes and his high-flying Hammers were hoping to provide a much-needed spark against the defending champions.
However, having also tasted defeat on the road to Wolves last weekend, it is now two defeats on the bounce for the Londoners to somewhat sour their Europa League heroics in Vienna.
For City, beating PSG and one of the most in-form teams in the Premier League in the space of one week is a stern reminder to their Premier League rivals they have no plans to relinquish their crown without a fight.
City thought they had taken the lead when Ben Johnson's intercepted pass inadvertently played in Riyad Mahrez and the Algeria international fired past Lukasz Fabianski.
However, the visitors were spared as the linesman's flag was raised on the far side and VAR concluded Michael Oliver and his team had made the correct decision.
The hosts were spurred on by the close call and began to ramp up the pressure, Aymeric Laporte glancing a header off the post and centre-back partner Ruben Dias only just missing out.
Pep Guardiola's men then did take the lead just past the half hour mark when Mahrez drove into the box and his deflected cross somehow managed to squirm into the path of Ilkay Gundogan and he was rewarded for his late run into the box.
It could have been two just moments later thanks to more pressure down the City right as Gabriel Jesus fired a shot past Fabianski and Ben Johnson was forced to scramble back onto the line and clear when it seemed inevitable the ball would fall in.
Having initially caused Dias countless problems when isolating him in the channels, Michail Antonio appeared to struggle with a lack of support up front for the hosts as City enjoyed more of the ball in the frigid frost.
With the weather conditions becoming a serious concern for all involved, the ground staff frantically cleared away the snow on the pitch and deserve credit for seemingly keeping the fixture alive, despite needing more than the allocated 15 minutes.
Although Declan Rice forced a rather tricky save from Ederson with a swirling shot, it was not to be for the visitors and Fernandinho killed the game off with a well-placed finish from the edge of the box.
Substitute Manuel Lanzini scored a sensational consolation with a fine volley, but it was virtually the last kick of the game and the three points remained in Manchester.
Despite qualifying for the Europa League knockout stages as group winners, West Ham have consistently struggled to cope with the pressure of playing on Sundays immediately after Thursday games and now face the tricky visit of Brighton on Wednesday.
For Guardiola and his men, they visit Steven Gerrard and his Aston Villa side in midweek in the hope they can keep Chelsea at bay.