Napoli boss Maurizio Sarri has branded Real Madrid "the best team in the world" after suffering a 3-1 defeat at the Bernabeu in the first leg of their last-16 clash in the Champions League.

Lorenzo Insigne opened the scoring in the eighth minute as Napoli found an away goal, but efforts from Karim Benzema, Toni Kroos and Casemiro saw the Madrid side turn things around on home soil.

Sarri was full of praise for Real Madrid after the match, but the 58-year-old has insisted that his team are still in the last-16 tie ahead of the return fixture in Naples early next month.

"We faced the best team in the world but it is a pity that we made so many mistakes with the ball because we don't usually do that," Sarri told reporters.

"While we were not at our best tonight I think we can compete with them if we play our best football. We have only a few chances now but we will try to give everything and see what happens."

Napoli will return to Serie A action with a trip to Chievo on Sunday afternoon.