Manchester City's Champions League hopes are fading after falling behind to a Karim Benzema goal at the Etihad Stadium.
The match started evenly but it was the visitors who took the lead in the 10th minute with their first chance of the contest.
Angel di Maria found space on the wing to deliver an inviting cross towards the back post, which allowed Benzema to convert the ball past Joe Hart thanks to some slack marking from the City defence.
Sami Khedira then had two chances in as many minutes to double his side's advantage but the midfielder missed the target on both occasions from inside the area.
Madrid continued to dominate and Cristiano Ronaldo had his first opportunity of the game when he was put through on goal by Benzema but the Portuguese forward's chip was cleared off the line by Matija Nastasic before seeing his second effort blocked.
A rare chance for the hosts fell to Sergio Aguero but Iker Casillas reacted well to tip the striker's curling effort over the crossbar.
Khedira proved to be wasteful in front of goal once again when he broke free of the City defence only to direct his attempted chip straight at the body of Hart.