City staged a late fight back but ran out of time as Walsall Wood took the points at Claines Lane. With the score 1-4 going into added time, City scored two in 90 seconds to be in with a shout for a draw before the Referee called time.
City were without Aaron Roberts through suspension so Ben Tilbury played alongside Fortune Maphosa at centre half.
After an even first 15 minutes where City's best chance came from a 30 yard shot from Reiss Taylor-Randle which produced a great save by Callum Smith, the visitors took the lead and then controlled the rest of the half. The opener came when City again gave a free kick away on the edge of the box which was driven into the penalty area, the ball was cleared to Kaden May on the edge of the box who drove a shot into a crowded six yard box, Kev Monterio was quickest to react and prodded the ball home to make it 1-0.
City then had a good chance to draw level after breaking down the left, George Baker crossed into the box which fell to Bailey Fuller, his shot was blocked and eventually then picked up by the keeper. His clearance saw City concede a free kick just inside the half way line which was taken short, Jai Verma and Kamol Campbell combined well down the left and the latter dribbled into the box before City won the ball back through Curtis Smith who clearance went straight back to Verma on the edge of the box, he crossed to the back post to give Kaden May the simplest of headers from 4 yards out.
On 29 minutes City were dealt another costly blow. Reiss Taylor-Randle played a superb 40 yard cross field ball to Bailey Fuller who drove forward goal wards, however he was brought down with a poor challenge by Phil Mckerdy right on the edge of the box. From the resulting free kick, Jamie Smith crossed into Will Gibbons who could only deliver the ball into the keepers hands.
O 41 minutes Walsall made it 3-0. After forcing a corner on the right City failed to clear, the ball was sent back out to Stuart Hendrie on the right, he crossed in and the ball was headed back into Phil Mckerdy who headed home from three yards out.
Just before the break, City were on the end of another poor challenge when Jordan Smith Williams went in late on Sam Whitton but was remarkably only spoken to as Whitton limped off to take no further part in the game to be replaced by Archie Muirhead.
The half time break saw two changes for City as Bailey Fuller withdrew after failing to recover from the earlier challenge, he was replaced by Chinedu Osadebe and Cameron Monteith replaced Will Gibbons.
City improved slightly as the game went on, getting more of the ball. Jamie Smith went inches wide after winning a free kick from 25 yards out. Then on 73 minutes City pulled one back. Reiss Taylor-Randle playing a perfect chip though to Archie Muirhead on the right who finished from the edge of the six yard box.
On 75 minutes the Wood keeper played a long ball out to Adam Mcgurk who slipped as he went for the ball, but in doing so brought Jamie Smith down leaving both players injured. Rather than re-starting with a free kick to City, the Referee re-started with an uncontested drop ball which Kaden May passed to Stuart Hendrie who chipped the ball through to Jai Verma who slid the ball past Callum Smith to make it 4-1.
The fourth goal looked to have ended the game and Walsall took off May and Hendrie, but as the clock went over 90 minutes and into injury time, City saw a glimpse of hope. Fortune Maphosa sent Archie Muirhead down the right, he crossed into Cameron Monteith who cooly finished from the edge of the box.
Less than a minute later Archie Muirhead was brought down on the edge of the box. Jamie Smith then stepped up to hammer home the free kick to make it 4-3. In the next move forward City sent everyone forward, Reiss Taylor-Randle was taken out just outside the box, but the referee waved away appeals, City lost the ball and seconds later the game was over.