There is no doubt that Manchester City will defeat Leicester City. Manchester City is the only team in this season's games to have brilliant players who are able to play effectively on the field, so I have no doubts about their ability to defeat Leicester City. Arsenal's ability to hold onto their position is another thing I question; if they don't, Manchester City will undoubtedly win the Premier League.
Because they defeated a very good and competitive team in Bayern Munich 3-0 without allowing them to score a goal, I don't think Leicester will be a big deal for Manchester City.
They are stronger than Leicester City and if they won against Bayern Munich that is one of biggest and strongest clubs in Europe, they can beat Leicester City for sure. It would be an easy win for Manchester City and they don't need to win it big as they have better goal difference than Arsenal too.
The task for Manchester City is taking three points from Leicester City and avoid injuries on their star players. They still have another big match with Bayern Munich in Germany. They got big advantage after the first leg but must be carefully in Munich. The opponent is strong and can score some goals in a few minutes if Manchester City let Bayern do that.