Atletico Madrid coach Quique Sanchez Flores lamented the "terrible errors" his side made as they suffered yet more home misery at the hands of bitter rivals Real.

After trailing 3-0 in the second half of their Primera Division clash, Atletico almost snatched an unlikely point by staging a late onslaught on the Real goal following the sending off of visiting defender Sergio Ramos.

Strike duo Diego Forlan and Sergio Aguero both netted in quick succession to reduce the difference to one goal, and Atletico carved out at least two very good opportunities in the closing minute to salvage a draw.

However, they were unable to make a third breakthrough and Real, who have not lost a league game at the Vicente Calderon in a decade, recorded their seventh victory in their last eight visits to their rivals' home ground.

Sanchez Flores praised his side for their late fightback, but admits the damage was done with defensive mistakes helping Real's cause, most notably when Luis Perea was robbed of the ball on the edge of his own box by Gonzalo Higuain, who would subsequently but the visitors 3-0 up.

"We made big mistakes. The team's reaction was good, but insufficient to make up for the terrible errors that we made. We weren't very aggressive in our back line and that's where we had problems," said Sanchez Flores, a former Real player.

The defeat was the second setback in a matter of days for the struggling Rojiblancos after seeing their hopes of progressing further in the Champions League ended by their 2-2 draw with Chelsea.

Atletico showed good battling qualities against the big-spending English side as well though, and Sanchez Flores insists it is not all doom and gloom.

"We know that there's a lot of the league left and I'm not unhappy with the players' response," said Sanchez Flores, whose side stay in the relegation zone following the loss.

It's true that we were facing Real Madrid and Chelsea, two of the best football teams in Europe, but we have to keep working to get ourselves out of our current situation.

"The situation is what it is. We came into this match with the alarms on, but we're in the battle, in the fight to try and get out of here."