Atletico Madrid were knocked out of the Champions League round of 16 in controversial circumstances by Real Madrid following a penalty shootout.

Diego Simeone is not happy after city rivals Real Madrid eliminated Atletico Madrid from the Champions League round of 16 in dramatic fashion.

Los Blancos continued the quest for a 16th title following a controversial 4-2 in a penalty shootout after a tense clash on Wednesday night.

The match had ended 2-2 on aggregate, with the teams tied 1-1 after extra time. Atletico took an early lead through Conor Gallagher's goal just 27 seconds into the game, while Real Madrid missed a crucial penalty in the 70th minute when Vinicius Junior blasted the ball over the goal.

The penalty shootout was marred by controversy when VAR disallowed Julian Alvarez's attempt, ruling that he had touched the ball twice.

This decision sparked heated debate, with Simeone expressing his frustration and disbelief during the post-match press conference.

"I’ve never seen VAR call to review a penalty in a shootout," he said, according to a post by Fabrizio Romano, challenging journalists to confirm if they had seen Alvarez touch the ball twice.

“To anyone here: raise your hand if you saw that Julián touched the ball twice in the penalty. Come on! And? Ready? Nobody raises theirs. Another question.”

Simeone's comments highlighted the contentious nature of the call, which many felt was unprecedented in a penalty shootout.

Despite the controversy, Real Madrid emerged victorious, with Antonio Rudiger scoring the decisive penalty.

The win sets up a quarterfinal matchup for Real Madrid against Arsenal, who advanced alongside Aston Villa and Borussia Dortmund.

Atletico's elimination was another instance where they have struggled in penalty shootouts, having now won just three of eight in the Champions League.

Simeone, while disappointed, expressed pride in his team's performance, noting that they competed admirably against their city rivals.

“We competed in an incredible way,” he added per UEFA.com. “I am proud of my players. I am pleased because we competed in an exemplary way.”

However, the VAR decision remains a point of contention, with Simeone and many others still questioning its legitimacy.