Atletico Madrid's Marcos Llorente celebrates scoring his side's second goal against Liverpool on Wednesday in Liverpool, England. Photo: VCG

Holders Liverpool crashed out of the Champions League in the last 16 after Atletico Madrid scored three goals in extra time to earn a shock 3-2 victory at Anfield on Wednesday that sent them through 4-2 on aggregate.

After falling 2-0 down on the night, substitute Marcos Llorente struck twice in extra time and Alvaro Morata added a late third to ensure a famous victory for Diego Simeone's side against a Liverpool team unbeaten in their last 25 home games in European competition.

Premier League leaders Liverpool enjoyed the greater possession, created more chances, drew a series of saves from Atletico keeper Jan Oblak and scored through Georginino Wijnaldum and Roberto Firmino.

Yet after last season's memorable comeback by Liverpool against ­Barcelona in the semifinals, it was the ­Spaniards who turned the tables this time.

Simeone's Atletico are famed for their defensive solidity and their superb organization and those qualities were on full display, but it was their clinical finishing and remarkable spirit that proved the key elements.

"We don't know where our limit is," said Llorente who had only scored once for Atletico before this game.

"We all defended until the death and when a team all digs in like this, things like this happen. I cannot describe this feeling," he said.

Liverpool manager Juergen Klopp was not impressed with Atletico's approach, however.

"I don't understand with the quality they have the football they play. They could play proper football but they stand deep and have counter attacks," said the German.

"We accept it of course but it doesn't feel right tonight," he said.

But Simeone basked in another ­famous European night for the side he has twice led to the final in his eight years in charge.

"We play to win, with the arms that we have," said Simeone. "Respecting our identity, the characteristics of our players and exploiting the defects of our rivals."

The pain of this exit will surely ease for Liverpool, who are 25 points clear in the Premier League and will soon win their first domestic league title for 30 years.

But for Atletico, who have never won Europe's premier club competition, this was a triumph which will have them dreaming of even greater things.

"This will go down in our history," said Simeone.

"It fills us with pride as a club, to be once more one of the top eight clubs in Europe."