Real Madrid suffered their 12th defeat of the season, by contrast to just two across the whole of the previous campaign.
Real have failed to claim a Champions League win in their three meetings with English side Arsenal, who are aiming for their first semi-final appearance since 2009.
A violent tackle that had Real Madrid striker Kylian Mbappe sent off in their 1-0 LaLiga win at Deportivo Alaves on Sunday was a consequence of a number of small fouls committed against the Frenchman, said assistant coach Davide Ancelotti.
"I shouldn’t talk about things about my future, because the contract is quite clear. Whatever it is, it will be talked about at the end of the season," Ancelotti told reporters on Saturday.
"The possibilities (of qualifying) are quite low, but we have to try 100%," he told reporters
Real Madrid have set the bar sky high with six Champions League titles in a decade and their demanding fans have been voicing concerns as last year's European and Spanish champions struggle for consistency this season.
Wednesday’s high-voltage Champions League first-leg quarterfinals lineup will feature defending champions Real Madrid taking on Arsenal at the Emirates Stadium. Here we take a look at a few highlights ahead of the contest:
Ancelotti acknowledged that winning LaLiga had become a long shot but that it should not affect their Copa del Rey and Champions League campaigns.
Rivals Real Madrid and Barcelona, locked in a title battle in La Liga and set to face off in the Copa del Rey final, have "a lot of respect" for each other, says Los Blancos coach Carlo Ancelotti.
Ancelotti said he was in awe of Endrick's remarkable skill after the 18-year-old Brazilian scored the winner and fired a brilliant strike off the post.
If Madrid progress as far as possible in the Champions League and Copa del Rey, as well as the Club World Cup in the summer, they could play 72 games this season.
Modric, Ballon d'Or winner in 2018, scored Real's opener in the victory, controlling a looping clearance from a corner with his chest before unleashing a sublime long-range volley which arrowed into the top corner in the 41st minute.
Ancelotti said Mbappe had the potential to reach the same level as club great Cristiano Ronaldo, who is Real's all-time leading scorer with 451 goals in 438 games for the 15-times Champions League winners.
When the topic of miracles in the Champions League comes to the fore, the first team that would pop up in any fan’s mind would be Real Madrid.
Ancelotti was delighted to finally lead Real to their first success at the Etihad Stadium, a victory he thought was deserved due to the chances created, with Real having 20 shots compared to 11 from City, despite falling behind twice.
Manchester City boss Pep Guardiola said his side lacks composure to defend a lead after Real Madrid struck twice late on to snatch a 3-2 win from the first leg of their Champions League play-off.
Real Madrid's Jude Bellingham struck a last-gasp goal to give the Champions League holders a 3-2 victory over Manchester City in an edge-of-your-seat first leg of their knockout phase playoff on Tuesday at the Etihad Stadium.
Ancelotti rested several key starters ahead of Saturday's LaLiga derby against Atletico Madrid and next-week's Champions League playoff clash at Manchester City.
The holders will face either Celtic or Manchester City in the two-legged playoff on February, with the second leg at home.