Diego Forlan struck an extra-time away goal to end Liverpool's Europa League hopes and book Atletico Madrid a place in the final against Fulham on 12 May.
Trailing 1-0 from the first leg in Spain, Liverpool levelled the tie when Alberto Aquilani converted Yossi Benayoun's cross with a fine finish.
And they made it two early in extra time through Benayoun's half-volley.
But former Manchester United striker Forlan fired home a Jose Antonio Reyes cross to confirm Liverpool's exit.
The result will simply add to the gloom surrounding Anfield in what has been a miserable season on and off the pitch.
Rafael Bentiez's side suffered early exits in both domestic cup competitions and the Champions League, while they currently languish seventh in the Premier League
.Trailing 1-0 from the first leg in Spain, Liverpool levelled the tie when Alberto Aquilani converted Yossi Benayoun's cross with a fine finish.
And they made it two early in extra time through Benayoun's half-volley.
But former Manchester United striker Forlan fired home a Jose Antonio Reyes cross to confirm Liverpool's exit.
The result will simply add to the gloom surrounding Anfield in what has been a miserable season on and off the pitch.
Rafael Bentiez's side suffered early exits in both domestic cup competitions and the Champions League, while they currently languish seventh in the Premier League
