Holders Real Madrid remain in contention for a top-eight spot after sweeping aside Red Bull Salzburg 5-1, but Bayern Munich’s hopes of automatic qualification took a hit with a 3-0 defeat by Feyenoord.

Pep Guardiola’s City were left stunned as they blew a two-goal lead after Jack Grealish and Erling Haaland struck early in the second half in pouring rain at the Parc des Princes.

Substitute Ousmane Dembele soon halved the deficit for PSG and Bradley Barcola equalised on the hour after Desire Doue’s effort came back off the crossbar.

Joao Neves’ diving header put PSG on top before Goncalo Ramos added a late fourth as the French champions climbed from 26th in the table to 22nd and bumped City out of the qualifying spots for the knockout phase.

“I don’t know how we did it, to be honest,” PSG coach Luis Enrique told Canal Plus.

“We started the second half in the worst way possible by conceding two goals. It was tricky at that point, but at the same time this team believes in itself.”

City, the European champions in 2023, are down in 25th having failed to win any of their last four games in the competition and must beat Club Brugge at home next week to salvage their campaign.

“I accept the defeat because the best team won,” said Guardiola.

“It’s in our hands, we have to win the last game,” he added. “Hopefully we can qualify. If it doesn’t happen, we don’t deserve it.”

Arsenal are on the verge of the last 16 as goals from Declan Rice, Kai Havertz and Martin Odegaard sealed a 3-0 home win over Dinamo Zagreb — their fifth victory in seven games in Europe.

“It’s a massive step. We’re very close to achieving the goal we had before the group stage started,” Arsenal manager Mikel Arteta told TNT Sports.

The Gunners, who go to Girona in their final game in the league phase, are third in the 36-team table and three points clear of ninth-placed Aston Villa with a far superior goal difference.

Madrid canter as Bayern falter