Manchester United and Manchester City crashed out of the Europa League on Thursday, as the English Premier League was muscled into the shadows by Spain, who boast three teams in the quarter-finals.

United were beaten 2-1 by Athletic Bilbao, the Spanish side reaching their first European quarter-final for 35 years after a 5-3 aggregate victory.

City, meanwhile, battled back from 2-0 down on the night, and 3-0 in arrears on aggregate, to Sporting Lisbon to win their last 16 second-leg match 3-2, but the Portuguese side went through on the away goals rule.

United and City’s double blow left Chelsea, who reached the Champions League quarter-finals on Wednesday, as England’s only remaining representative in Europe this season.

Sir Alex Ferguson’s United, 3-2 down from the first leg at Old Trafford, fell to a stunning volley from Fernando Llorente and a second-half strike by Oscar de Marcos in Bilbao.

United replied with a fine goal from Wayne Rooney in the 80th minute, but the visitors could not find the two goals they needed to take the game to extra time.

“We can’t complain,” said Ferguson.

“In the first half we let in a very soft goal, which was the last thing we wanted. I can’t believe we lost a goal like that.

“There are lessons to learn in every match. It’s disappointment, more than anything, that we didn’t play our best in the Champions League and now we’re out of the Europa League.”

Bilbao, currently seventh in La Liga, will learn their quarter-final opponents in Friday’s draw in Nyon.

City had lost the first leg 1-0 in Portugal and Sporting went 2-0 ahead on the night with Matias Fernandez and Ricky van Wolfswinkel both on target before the interval.

Roberto Mancini’s side roared back in the second half as two goals from Sergio Aguero and another from the penalty spot by Mario Balotelli, gave hope of completing a dramatic recovery.

But they were unable to find another goal as Sporting held on.

“We left them too much space on the counter-attack, didn’t play as a team. We expected the counter-attack and didn’t do a good job in the first half. We could have scored the fourth after scoring three,” said Mancini.

“I might have made mistakes, I’m sorry for the supporters.”

Dutch league leaders AZ Alkmaar lost 2-1 in Italy to Udinese but Brett Holman’s side progressed 3-2 on aggregate despite having defender Nick Viergever sent off in the first minute.

A wonderful left-foot shot from Erik Falkenburg on the half-hour mark put Alkmaar back in control after two early goals from the hosts.

Valencia joined Bilbao in the quarter-finals after a 1-1 stalemate with PSV Eindhoven gave them a 5-3 aggregate win.

Atletico Madrid, the 2010 winners, became the third Spanish side into Friday’s quarter-final draw when a 3-0 win at Besiktas gave them a 6-1 aggregate success.