The Scottish champions took the lead three times in a thrilling clash but City hit back each time to snatch a 3-3 draw.
Celtic were ahead in the third minute when Scott Sinclair's free-kick was volleyed across goal by the unmarked James Forrest and Erik Sviatchenko's header deflected in off Dembele's chest.
It was the first time that City had fallen behind all season but they were level nine minutes later when Aleksander Kolarov's scuffed shot trickled into the path of Fernandinho and the Brazilian tucked the ball past Craig Gordon.
But the home side were back in front in the 20th minute when Kieran Tierney's shot deflected off a sliding Sterling and past Claudio Bravo at his near post.
The England international made amends eight minutes later when he raced onto David Silva's through ball before his quick turn deceived the challenges of Tierney and Gordon and he tapped into an empty net.
A minute after the restart Celtic were ahead again when Kolarov failed to deal with Tierney's cross and Dembele hooked the ball into the net.
City hit back again 10 minutes later when Nolito tapped into the net after a Sergio Aguero shot was saved by Gordon.
Fernandinho almost snatch a win for City late on but his drilled shot flew inches over the bar. SHARE YOUR STORY WITH US VIA EMAIL: INFO@247NIGERIANEWSUPDATE.CO RECEIVE NEWS VIA OUR WHATSAPP, KINDLY TEXT +234 701 056 0394 TO ADD YOU CLICK HERE TO JOIN US ON OUR YOUTUBE CHANNEL FOR NEWS UPDATE CLICK HERE TO JOIN US ON TWITTER FOR INSTANT NEWS UPDATE: @247NGNEWSUPDATE CLICK HERE TO JOIN MILLIONS AROUND THE GLOBE TO READ NEWS ON OUR FACEBOOK FAN PAGE FOR INSTANT UPDATES ON INSTAGRAM CLICK HERE RECEIVE INSTANT NEWS UPDATE VIA OUR BBM BROADCAST: D3EDEFDF PLACE YOUR TEXT ADVERT BELOW:>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>