Glory's rise continued with an action-packed 3-2 win over last season's champions.
The blockbuster match did not disappoint, with a red card, five goals and wave after wave of attacks from the outset in humid conditions at AAMI Park.
City was quick out of the blocks as it looked to snap their two-match losing streak, with Welsh star Jessica Fishlock and American forward Beverly Yanez central to their side's attack. Yanez almost immediately opened the scoring following Lauren Barnes inviting ball from the left flank, but the new signing was unable to steer the ball on target.
Glory soaked up the pressure and defended superbly, as Despotovski's troops then looked to push for the opener. Rossie Sutton was instrumental in the away side's attacks, providing a series of inch-perfect through balls for captain Sam Kerr, who was unable to take advantage in the first stanza.
The sides entered the main break locked at 0-0, with the balance of play evenly poised.
The reigning champions were swiftly made to pay for their missed chances just two minutes following the restart, as Sutton opened the scoring with a well-placed strike to the bottom right corner following Shawn Billam's fantastic pass across the deck.
Glory's ascendancy didn't last long, as Fischlock's acrobatic strike on the hour mark restored parity and set up an intriguing final third to the encounter.
The end-to-end attacking football continued from both sides and City grabbed the lead for the first time in the match at the 72nd minute mark following Aivi Luik's deflected strike sending Glory keeper Gabrielle Dal Busco the wrong way.
But again the lead didn't hold for long, with Kerr coolly dispatching an equaliser past Lydia Williams following Sutton's perfect pass into the box.
Glory's counter attacking play spearheaded by Kerr proved too much for City following Lauren Barnes send off with just over 10 minutes to go, as the captain sealed all three points with a brilliant finish from a tight angle on 84 minutes.
The massive win for Perth is its fourth in a row and sends the side temporarily to the top of the Westfield W-League.
Glory will now turn its attention to its first home match of the New Year when it hosts the Newcatle Jets at Dorrien Gardens on January 2.
2' Lauren Barnes inviting cross into the Glory box to Beverly Yanez at the back post is skewed wide of the mark.
4' Sam Kerr's tenacity and pace led to the skipper delivering a perfect ball along the City box, but Rosie Sutton skews the ball over Lydia Williams goal.
15' After some great build-up play initially from Arianna Romero, Vaness DiBernardo's eventual shot from outside the area is comfortably saved by Williams.
16' Teigen Allenn's fantastic through-ball forces Gabrielle Dal Busco into making a timely and crucial intervention to stop.
19' Jessica Fishlock's goal-bound free kick from 25 yards is expertly saved by Dal Busco's fingertip effort pushed the ball onto the crossbar and eventually cleared.
21' Kerr and DiBenardo's tidy link-up play on the right-hand side leads to the latter striking from distance, but the American's left-footed strike is straight at Williams.
34' Kerr's pacy run down the right-hand side and sublime ball across the City box is met by Sutton, but the forward is unable to finish from close range.
37' Alyssa Mautz's defence-splitting ball puts Kerr through one-on-one with Williams, and the keeper is able to stick a leg out to divert the ball away for a corner.
42' Sutton's ball to Kerr just inside the box on the left-hand side leads to another great chance, but the Matildas star's shot sails over the bar.
47' GOAL - Sutton put Glory in front just after the restart with a brilliant first- time finish from a Shawn Billam pass.
55' Erika Tymrak's surging run forward and powerful shot from the edge of the area is straight into the safe hands of Dal Busco.
60' GOAL - Fishlock restores parity with an acrobatic finish after Glory fails to clear City's set-piece.
67' Substitute Jacynta Galabadaarachchi's volley rattles the crossbar and is cleared by the Glory defence.
71' Another great run into the box from Kerr leads to a great one-on-one chance, but Williams saves again.
72' City hit the lead after a deflection from Luik's strike trickles into the net.
76' A perfect through ball from Sutton sets up Kerr who is able to cooly dispatch into the net as Glory level.
84' A piece of individual brilliance from Kerr grabs the lead back for Glory, as her calculated shot from a tight angle deceives Williams and bounces in courtesy of the upright.
Tuesday, 27th December 2016 Melbourne City v Perth Glory
Venue: AAMI Park Kick-Off: 2:05PM (AWST)
Referee: Casey Reibelt
Assistant Referee 1: JoannaCharaktis
Assistant Referee 2: Sarah Wikeley
Fourth Official: Danielle Anderson
PERTH GLORY: 2. Sarah CARROLL, 3. Kim CARROLL, 4. Alyssa MAUTZ, 7. Nicole STANTON, 8. Shawn BILLAM (Jaymee GIBBONS 52'), 9 Rosie SUTTON, 10. Vanessa DIBERNARDO (14. Caitlin DOEGLAS 69'), 17. Natasha RIGBY, 18. Gabrielle DAL BUSCO (GK), 20. Samantha KERR (C), 22. Arianna ROMERO
Subs: 1. Melissa MAIZELS (GK), 5. Patricia CHARALAMBOUS, 12. Roisin CONNOLLY
Yellow Cards: Nicole STANTON 17', Natasha RIGBY 43', Jaymee GIBBONS 90+2
Red Cards: Nil
MELBOURNE CITY: 1. Lydia WILLIAMS, 2. Teigen ALLEN, 3. Lauren BARNES, 5. Laura ALLEWAY, 6. Aivi LUIK, 7. Stephanie CATLEY (C), 10. Jessica FISHLOCK, 11. Erika TYMRAK (18. Jacynta Galabadaarachchi 62'), 13. Rebekah STOTT, 14. Melina AYRES (15. Amy JACKSON 83'), 16. Beverly GOEBEL
Subs not used: 19. Tyla VLAJNIC, 23. Erin HUDSON (GK)
Yellow Cards: 65' Jess FISHLOCK, 73' & 79' Lauren BARNES, 87' Teigen ALLEN
Red Cards: 79' Lauren BARNES