PARIS  - English champions Manchester City and rivals Arsenal both slumped to defeats in their final Champions League group matches on Tuesday leaving City without even the consolation of a Europa League spot and the Gunners failing to top their group and facing a tough Last 16 draw.

City bowed out with a passionless performance in a 1-0 defeat away to a largely second string Borussia Dortmund side, who topped the group, while City finished bottom with three points, the lowest amount recorded by an English side in the history of the group phase.

Ajax took the Europa League place despite losing 4-1 away at Real Madrid.

Arsenal let slip a 1-0 lead to lose 2-1 away at Olympiakos, who secured a deserved Europa League place while German outfit Schalke 04's 1-1 draw away at Montpellier ensured they edged out Arsenal for top spot.

That will only increase the pressure on the English side's previously untouchable manager Arsene Wenger with their domestic title hopes already all but over as they trail leaders Manchester United by 15 points.

While Wenger may be starting to feel the heat, the pressure eased a bit on Carlo Ancelotti, manager of big spending Paris Saint Germain and a side that Wenger has been linked with, as the French outfit beat Porto 2-1 to leapfrog them and top their group. "I am sure that now things will quickly get better in the league," said Ancelotti. "There is no problem in the PSG dressing room, when you have to build a team with lot of new players; it takes time, that's only natural."

There was to be some consolation for the hard-pressed fans of that group's bottom side Dinamo Zagreb as Ivan Krstanovic gained them their only point of the group phase with a penalty five minutes into time for a 1-1 draw with Dynamo Kiev added on in a game played in heavy snow in Zagreb. In the other group the only outstanding issue was settled as Russian side Zenit St Petersburg withstood enormous pressure from already qualified seven-time champions AC Milan to win 1-0 away in Italy and take third place and a Europa League spot at the expense of Anderlecht.

Manchester City were undone by Julian Schieber, who crowned his first Champions League appearance of the season to score Dortmund's winner when he slotted home from a brilliant low cross by Polish star Jakub Blaszczykowski in the 57th minute. It left City's outstanding goalkeeper Joe Hart seething.

"I would love to be able to answer why we have been so poor in Europe this season but I can't. All I know is that we have to address it," said Hart. "We have let ourselves down. We should be competing for a place in the last eight not going out like this."

Real Madrid eased to victory over Ajax with Brazilian star Kaka's superb effort making him the most prolific all-time Brazilian scorer in the Champions League with 28 edging ahead of fellow 2002 World Cup winner Rivaldo.

Real coach Jose Mourinho said that he wasn't disappointed with their overall group campaign. "Well we emerged from the Group of Death and there will be plenty of teams who topped their groups who will not wish to be drawn against us," said Mourinho.

Arsenal's hopes of keeping their 1-0 lead to the end - thanks to Tomas Rosicky's first goal since March - never looked likely as they had failed to keep a clean sheet on their five previous visits to Greece.

Sure enough goals in the second-half by Giannis Maniatis and substitute Kostas Mitroglu ensured the hosts gained a second successive home win over their opponents, having beaten them 3-1 at the same stage last season. Wenger took the defeat on the chin, something he has to get used to of late.

"We had a good first half but dropped physically in the second. Many of the players are not used to that level.

"We have to wait for the draw but ideally you would want to finish first."

Meanwhile, Manchester City manager Roberto Mancini was disappointed the English champions failed to even qualify for the Europa League after their 1-0 loss against Borussia Dortmund in their final Champions League group match.

City's abject display against a second string Dortmund side - who topped the group while the English champions finished bottom - saw them become the first English side to finish a Champions League group stage with just three points and without a victory.

"Getting into the Europa League was our target tonight," said Mancini, who in his two previous seasons has guided City to first the FA Cup and then last term the Premier League title.

"We wanted to win but to win we needed to score. We are not in the Europa League and for this we should be disappointed.

"We were in a tough group but if you make mistakes in early games as we did you will not qualify."

City keeper Joe Hart, who was probably the team’s best player on the night, said it was the same old story for his team, and he doesn’t know the answer to the problem.

"There was a hunger to win tonight, and if that meant Europa League than great," said Hart, who made a series of great saves to keep the scoreline respectable.

"But we have got bigger issues than that. We were up against a weakened team and we had to win.

"We should be fighting to go through to the last 16 on the last day and we have only got ourselves to blame that we are not."

With their European season over, City will now focus entirely on defending their Premier League crown with the huge Manchester derby against leaders United next up on Sunday.

"It will help (in the Premier League) because we are not in the Europa League but at the moment we cannot think about this," said Mancini, whose team is three points behind United.

"Sunday will be different for sure, it will be a very tough game but we will recover some players."

Hart meanwhile doesn’t think the European flop will have an impact on their Premier League campaign.

"We have been fantastic in the league though so there is no worries on that front," he said.

"We have been consistent. Hopefully we can win the league and be back (in the Champions League) next year."

Dortmund’s journey in the Champions League continues after a huge campaign already - ending unbeaten in the group on 14 points.

"We didn’t think we would take 14 points though I knew that we would be a tough out. But to win games against those types of teams is amazing," said their coach Jurgen Klopp.

"There are still great teams left in the Champions League. But I think we have earned some respect. You can’t just look past us. We definitely are looking forward to what comes next."

City striker Edin Dzeko said the rest of the teams in the knockout stages should not be looking forward to facing Dortmund.

"They are a great team. Are they favourites, I don’t know. But the way they played in this group against some great teams, they have a chance," said Dzeko.

Mancini also would not be surprised if Dortmund - who won the trophy in 1997 - go far in the competition.

"Borussia went out in the group stages last year and, like us, they were in last place and now this year I believe they are one of the teams that can win it," said Mancini.