It was City who came closest to getting the opening goal. Stuart Green crossed in a 24th minute free kick, and Terriers keeper Paul Rachubka made a superb save to turn Stuart Elliott's header round the post. From the corner, City thought they had scored when Junior Lewis put the ball in the net, but play was brought back for his foul on Steve Yates.
Andy Booth headed wide Huddersfield's best chance just before half time.
City were the better side in the second half though, and Danny Allsopp went agonisingly close after Ben Burgess played him in.
Allsopp did likewise for Burgess with an hour gone, but Rachubka was able to smother the ball at Burgess's feet. However, his wreckless challenge forced City's top scorer to go off, with Ryan France replacing him.
Peter Taylor made his second substitution by bringing on Jon Walters for Danny Allsopp in the 76th minute, and City looked lively going forwards.
Damien Delaney was unable to find the target with a shot, while at the other end he was commanding with Marc Joseph and Boaz Myhill to shut out Huddersfield.
Junior Lewis should have won it in the dying minutes. City's inspirational captain Ian Ashbee put in a cross to the back post, but Lewis's header was saved by Rachubka.
23,495 - a new record attendance for the KC Stadium - saw the promotion battle end in a stalemate. Lincoln and Mansfield are both out of the running for automatic promotion after failing to win today, while Torquay are the only team still challenging for the top three. They're three points behind Huddersfield, who themselves are two behind City, with each having just two games left to play.
City line-up (4-4-2): Myhill; Thelwell, Joseph, Delaney, Dawson; Green, Ashbee, Lewis, Elliott; Allsopp (Walters 76), Burgess (France 62).
Un-used subs: Musselwhite, Hinds, Forrester.