Alex Ferguson was hoping to celebrate his appointment as Manchester United manager 18 years ago this weekend with a derby win that would have closed the gap on leaders Chelsea to nine points.
However, United's strikers failed to score for the second Premier League game in a row and the team have failed to capitalise on their 2-0 home victory over champions Arsenal two weeks ago.
"Maybe there's the big game factor," manager Alex Ferguson said by way of explanation for United's free-scoring form in the Champions League as opposed to poor domestic finishing.
"Maybe the mundane challenge of the Premier League is not the same," he told Sky Sports.
"But the belief's still there, we've dominated the game... we created some great chances. We're suffering at the moment."
To make matters worse for United, a frustrated Smith was dismissed for the 10th time in his career for two yellow cards after a late tackle on Dunne in the 89th minute.
DEFIANT FORM
Kevin Keegan's City side soaked up United's attacks with defenders Richard Dunne and Sylvain Distin in defiant form.
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Saha then had a decent appeal for a penalty rejected as City decided on staunch defence rather than look for a first win at Old Trafford since Denis Law's cheeky back-heel earned victory over his former club in 1974, effectively relegating United.
City's goal remained under siege in the second half with Steve McManaman clearing Smith's overhead kick off his line in the 63rd minute.
Halftime substitute Ryan Giggs then fired narrowly wide after being sent through by Saha's exquisite reverse pass.
Wayne Rooney was introduced with 15 minutes remaining but it was Saha who wasted United's best chance by heading Gigg's cross wide in stoppage time.
