Match ends, Levante 1, Real Madrid 0.
Real Madrid spurned the chance to go back above Barcelona at the top of La Liga as mid-table Levante inflicted their first league loss since October.
Barca, who visit Real next Sunday, went two points clear with a 5-0 win over Eibar earlier in the day.
But Real responded with a lacklustre display before Wednesday's Champions League game with Manchester City.
The visitors missed a host of chances before Jose Luis Morales claimed a late winner with a superb volley.
Eden Hazard missed Real's best chance midway through the second half before the Belgian forward hobbled off injured.
The Spanish giants were then stunned as Nikola Vukcevic played a speculative ball over their defence and winger Morales raced on to it before unleashing a first-time strike from the left side of the Real box.
Goalkeeper Thibaut Courtois actually pulled his hands away from the ball as Morales' shot flashed past the Belgian at his near post.
The long-serving Levante captain, 32, was then substituted immediately after scoring just his second goal of the season and his team-mates survived some late pressure by Real to earn just their second win in seven league games.
Gareth Bale and fellow forward Luka Jovic were absent through illness, with Isco and Luka Modric the two changes for Real after last week's 2-2 draw at home to Celta Vigo.
Isco and Karim Benzema were denied as Levante goalkeeper Aitor Fernandez made a double save early on before Casemiro headed wide after a poor punch clear by Fernandez.
Enis Bardhi tested Courtois as Real lost control of the game in the second half, before Morales broke the deadlock.
And the closest Real went to salvaging a point before Wednesday's last-16 first leg (20:00 GMT) was when Sergio Ramos' header was saved in stoppage time.
Line-ups
Levante
Formation 4-4-2
- 13Fernández
- 20Miramón
- 15Postigo
- 18González
- 3García Aranda
- 11MoralesSubstituted forMartínezat 80'minutes
- 17Vukcevic
- 24Campaña
- 10Bardhi
- 9MartíBooked at 35minsSubstituted forMeleroat 67'minutes
- 21MayoralSubstituted forLeónat 88'minutes
Substitutes
- 1Ruiz Ojeda
- 6Duarte
- 7León
- 19Clerc
- 22Melero
- 23Andújar Moreno
- 36Martínez
Real Madrid
Formation 4-3-3
- 13Courtois
- 2Carvajal
- 5Varane
- 4RamosBooked at 10mins
- 12Marcelo
- 10ModricSubstituted forValverdeat 81'minutes
- 14CasemiroBooked at 71mins
- 8Kroos
- 22IscoSubstituted forVázquezat 73'minutes
- 9Benzema
- 7E HazardSubstituted forVinícius Júniorat 67'minutes
Substitutes
- 1Areola
- 3Militão
- 15Valverde
- 16Rodríguez
- 17Vázquez
- 23Mendy
- 25Vinícius Júnior
- Referee:
- Alejandro José Hernández Hernández
- Attendance:
- 22,543
Match Stats
- Possession
- Home37%
- Away63%
- Shots
- Home8
- Away19
- Shots on Target
- Home2
- Away7
- Corners
- Home3
- Away7
- Fouls
- Home16
- Away10
Live Text
Post update
Full Time
Second Half ends, Levante 1, Real Madrid 0.
Post update
Attempt saved. Sergio Ramos (Real Madrid) header from the centre of the box is saved in the bottom right corner. Assisted by Marcelo with a cross.
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Raphael Varane (Real Madrid) wins a free kick in the defensive half.
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Foul by Gonzalo Melero (Levante).
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Foul by Daniel Carvajal (Real Madrid).
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Bruno González (Levante) wins a free kick in the defensive half.
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Corner, Real Madrid. Conceded by Sergio Postigo.
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Toni Kroos (Real Madrid) wins a free kick in the defensive half.
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Foul by Pablo Martínez (Levante).
Substitution
Substitution, Levante. Sergio León replaces Borja Mayoral.
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Foul by Raphael Varane (Real Madrid).
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Borja Mayoral (Levante) wins a free kick in the attacking half.
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Corner, Levante. Conceded by Raphael Varane.
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Attempt blocked. Borja Mayoral (Levante) right footed shot from the centre of the box is blocked. Assisted by Gonzalo Melero.
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Attempt blocked. Karim Benzema (Real Madrid) left footed shot from very close range is blocked. Assisted by Vinícius Júnior.
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Corner, Real Madrid. Conceded by Sergio Postigo.
Substitution
Substitution, Real Madrid. Federico Valverde replaces Luka Modric.
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Attempt missed. Toni Kroos (Real Madrid) left footed shot from outside the box is high and wide to the left.
Substitution
Substitution, Levante. Pablo Martínez replaces José Luis Morales.