City came back from 2-0 down to win 3-2 on the night, with the last-16 tie ending 3-3 on aggregate.
City had lost the first leg 1-0 in Portugal and Sporting went 2-0 ahead on the night with Matias Fernandez and Ricky van Wolfswinkel both on target before the interval for a 3-0 overall lead.
Roberto Mancini's side roared back in the second half as Sergio Aguero (2) and Mario Balotelli, from the penalty spot, gave hope of completing a dramatic recovery.
But they were unable to find another goal as Sporting held on and City joined neighbours Manchester United in exiting the tournament.
Source: AFP
Source: AFP