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The victory makes it 14 games unbeaten in all competitions for Manchester City, who have kept 11 clean sheets in those 14 matches.
Wednesday's triumph was spurred on by Foden, who became the club's leading goalscorer this season in the process.
Foden tucked a shot inside the near post in the 44th minute, marking his eighth goal in all competitions this campaign.
With Manchester City now surging, Foden believes that the club are back to playing their best after some difficult results to start the season.
"It definitely feels like we're back to our best. We've taken confidence from the last few results," he told BT Sport.
"We could have done better today but overall I'm very proud of the team. It's a great result.
"Brighton defended really well and had a good game plan. To get the goal before half-time was really important. It ended up as the winning goal so I'm delighted.
"I don't score too many with my right foot so I enjoyed it.
"I always like to score goals and be there in the box. We just want to keep going with this form and pushing to win the league."
Pep Guardiola toldBBC Sport: "Phil Foden is 20 years old, look at the starts. The amount of games, the assists compared to the bigger stars in football. Can play both sides, in the middle as a false nine. He is so clever in front of goal. That is why he deserves to play."
United and Liverpool are set to collide this weekend, with the Red Devils currently maintaining a three-point lead over Liverpool and a four-point lead overCity, who have a game in hand.