Holders Liverpool eliminated

Liverpool's reign as European champions ended yesterday when they lost 2-0 at home to Benfica and went out of the Champions League 3-0 on aggregate.

Milan, the club they beat to win the European Cup in Istanbul last May, advanced to the quarter-finals with a 4-1 win over Bayern Munich for a 5-2 aggregate success.

Arsenal also reached the last eight after a goalless draw with Real Madrid at Highbury for a 1-0 aggregate victory.

Olympique Lyon avenged last season's quarter-final defeat to PSV Eindhoven by crushing the Dutch side 4-0 at home for a 5-0 aggregate win to enhance their claims as the dark horses.

Benfica, Milan, Arsenal and Lyon join Barcelona, Villarreal and Juventus, who all came through on Tuesday, in the last eight, while the final first knockout round tie between Inter and Ajax Amsterdam will be decided in Milan next Tuesday.

Benfica, who had lost seven of their previous eight matches in England over the years, took the lead through Sabrosa Simao who was on the verge of joining Liverpool last summer before the move stalled as they refused to match Benfica's asking price.

He curled an unstoppable shot past Liverpool keeper Pepe Reina from 20 metres after 36 minutes. Fabrizio Miccoli added a second a minute from time.

Although Liverpool battled bravely to defend their crown they could find no way back into the tie after losing 1-0 in Lisbon two weeks ago. Peter Crouch and Jamie Carragher both struck the woodwork for Liverpool, who came from 3-0 down to win last year's final against Milan, while Crouch and Xabi Alonso were denied by fine saves from Benfica goalkeeper Marcelo Moretto.

Arsenal knocked nine-times winners Real Madrid out of the competition. The Londoners dominated the first half but failed to take their chances, the best falling to Jose Antonio Reyes who fired against the bar in the 43rd minute with the goal gaping.

Real, as badly off the pace in the first period as they had been in the first leg, injected some pace after the break and went agonisingly close on the hour when Raul smacked an 18-metre half-volley against a post, then saw home keeper Jens Lehmann somehow claw his follow-up past the upright.

Arsenal striker Thierry Henry, scorer of the only goal in the Bernabeu, twice went close in the last 20 minutes as both teams threw men forward in increasing desperation but neither could find the net, much to Arsenal's satisfaction.

Inzaghi brace

At the San Siro, Filippo Inzaghi struck twice as Milan crushed Bayern Munich. Inzaghi put the Italians on their way after just eight minutes with a header at the back post from a whipped cross by Brazilian winger Serginho.

Shortly after missing a penalty, Andriy Shevchenko made it 2-0 for Milan in the 25th minute with a beautifully angled header from a Jaap Stam cross.

Bayern got back into the game in the 36th minute after Milan's Brazilian keeper Dida failed to hold on to Bastian Schweinsteiger's long range free-kick and Valerien Ismael reacted quickly to drive home the loose ball.

But two minutes after the break Milan, six-times European champions, put the game beyond the Germans with Inzaghi's second goal, his 50th in European club competition, before Kaka made it 4-1 with a confident finish just before the hour.

Midfielder Tiago's first-half double inspired Lyon to victory and a place in the last eight of the competition.

Tiago netted from close range after 26 minutes and made it 2-0 with a 15-metre strike just before the break.

French winger Sylvain Wiltord made it 3-0 after 71 minutes before substitute Fred completed the rout.

PSV played the second half with 10 men after captain Phillip Cocu was shown the red card for a second bookable offence in the 43rd minute.

Last 16 - second legs

Second leg: Inter vs Ajax (first leg: 2-2) - March 14.
Quarter-finals: March 28 and April 5. Semi-finals: April 18 and 26. Final: May 17.