Leicester's dream of UEFA Cup glory is still very much alive after Ian Marshall grabbed a precious first-half away goal to leave Atletico Madrid facing a testing visit to Filbert Street in a fortnight's time. Second-half strikes from an inspirational Juninho and a Vieri penalty gave Atletico a victory their dominance after the break deserved.
But Leicester will need only a 10 win in the return to cause one of the biggest European upsets of all time.
Madrid produced some typically free-flowing football with Juninho posing a lot more of a threat than in his two English League Cup final appearances against Leicester for Middlesbrough last season.
But Leicester also looked dangerous on the break and they frustrated Madrid for long periods with their typical never-say-die spirit.
Atletico looked shaky at the back in the absence of the suspended Santi Denia and Carlos Aguilera and the Spaniards were stunned when Leicester grabbed an 11th-minute lead.
Marshall squandered a great opportunity in the 10th minute when he was picked out by Neil Lennon. He completely miskicked with his first effort and his second was deflected over the bar.
But, from the resulting corner, the former Ipswich player came up trumps. Garry Parker's centre was headed back across goal by Leicester skipper Steve Walsh and Marshall drove home left-footed from six yards out.
Atletico responded in positive fashion with some typically neat football but Leicester harassed and tackled in typical fashion and looked dangerous on the break. Steve Claridge, who replaced the injured Marshall after 30 minutes, could have put them further ahead in the 43rd minute but he lobbed over when put clear by Heskey.
Atletico came out all guns blazing at the start of the second period and Leicester were fortunate to escape in the 53rd minute. Keller parried a shot from Kiko and a Leicester defender then somehow managed to block the follow up shot from Vieri at full stretch.
But Madrid's pressure finally paid off with two goals in two minutes. In the 71st minute Juninho played a one-two with Kiko before accelerating into the penalty area and driving a low shot into the corner of the net.
Then, 60 seconds later, Geli was brought down in the area by Steve Guppy and Vieri beat Keller's despairing drive to the left.
Atletico Madrid: Molina, Toni (Jose Marie 58), Andrei, Juninho, Vizcaino (Bejbl 64), Vieri, Lardin, Kiko, Geli, Kaminero (Pantic 77), Trodan. Subs Not Used: Futre, Bogdanovic, Roberto, Jaro. Booked: Vizcaino, Trodan. Goals: Juninho 70, Vieri 72 pen.
Leicester: Keller, Walsh, Izzet, Lennon, Parker (Fenton 71), Heskey, Kaamark, Prior, Elliott, Marshall (Claridge 30), Guppy. Subs Not Used: Whitlow, Cottee, Andrews, Savage, Campbell. Goals: Marshall 11. Attendance: 35,000.
Referee: R Helge Olson (Norway).