Goals: Raul 35', 56' - Villa 33', 67' pen; Arizmendi 88'

Cup finalists Valencia blew the title race wide open with Angel Arizmendi's late goal sealing a sensational 3-2 win over champions Real Madrid at the Santiago Bernabeu on Sunday.

Real are now just four points ahead of Barcelona at the top after Frank Rijkaard's team crushed Valladolid 4-1 at Camp Nou.

Real captain Raul Gonzalez showed he is not sulking about once again being omitted from the Spain squad with a double to put Real 2-1 up but compatriot David Villa grabbed a brace himself before Arizmendi scored the 88th minute winner.

"It is hugely disappointing to have lost this match but that is football," said Real coach Bernd Schuster. "The truth is that recently we have been made to pay for our mistakes.

"I have already told some players that sometimes in these matches it is better to settle for the draw. It wasn't necessary to risk so much to create a chance."

Valencia may have dumped Barcelona out of the Cup in midweek but they did the Catalan club a huge favour here and avenged their painful 5-1 drubbing by Real earlier this season.

Ronald Koeman's side climb to tenth with a win that allays lingering fears of relegation.

"The last few days have been fantastic with wins over Barcelona and now Real," said Koeman. "We are more relaxed now and this team is capable of playing really well."

It was a nice present to Barca from old boy Koeman after Rijkaard's team dispatched Valladolid thanks to a brace from youngster Bojan Krkic and goals from Samuel Eto'o and Andres Iniesta.

It was the perfect tonic for Rijkaard with more doubts expressed about his future following the Kings Cup semi-final defeat to Valencia.

"The players wanted to make a point and they deserve credit for their reaction to the cup defeat," said Rijkaard. "Now I hope our injured players can recover as soon as possible and that we have Deco, (Rafael) Marquez and Ronaldinho back soon."

Real started without Ruud van Nistelrooy, sidelined for several weeks with an ankle injury, but welcomed back Sergio Ramos from suspension.

The last time these two sides met Real were 4-0 up after just 36 minutes but there was no repeat as Valencia took the lead on 33 minutes.

Villa, a probable transfer target for Real this summer, broke the offside trap to curl the ball beyond Iker Casillas.

But the lead lasted barely sixty seconds as Raul headed in a Robinho cross.

Valencia looked a different side after their cup triumph over Barcelona and attacked with verve but Guti opened up their backline with a perfectly weighted pass and Raul drilled in his second goal.

Pepe was then adjudged to have fouled Daniel Silva in the penalty area and Villa smashed the spot-kick past Casillas.

Timo Hildebrand made several key saves before Arizmendi popped up with the killer blow late on.

Real Madrid: Iker Casillas; Sergio Ramos, Cannavaro, Pepe, Marcelo; Gago, Guti; Sneijder, Robinho (Higuaín 77'); Baptista (Robben 62'), Raúl.

Valencia: Hildebrand; Miguel, Albiol, Marchena (Helguera 32'), Caneira; Maduro, Banega (Baraja 65'); Arizmendi, Silva; Mata (Morientes 65'), Villa.