Moroccan midfielder Moha and Uruguayan striker Walter Pandiani scored in each half to give the Barcelona-based side their first league victory since April 8 and dent Atletico's European hopes.

Bulgarian winger Martin Petrov's late goal for the visitors was no more than a consolation.

Rufete was heavily involved as Espanyol dominated early on and the former Valencia midfielder set up Moha's goal on nine minutes, the Moroccan firing home at the far post from Rufete's cross to give the home side a deserved early lead.

The visitors saw little of the ball early on and appeared to be missing the presence of injured captain Fernando Torres up front.

In Torres' absence, Atletico coach Javier Aguirre paired Mista with Sergio Aguero in attack. And the Argentinian came close to equalising on 13 minutes, but was denied by a spectacular save by Espanyol goalkeeper Carlos Kameni.

But Espanyol then nearly went two up as Pandiani fired just wide following another excellent Rufete cross.

Rufete was causing Spain full-back Mariano Pernia all sorts of problems as Espanyol continued to dominate, but Atletico slowly improved as the first half wore on.

Mista and Aguero both tried their luck from distance and Jesus Lacruz made a telling intervention to prevent the former Valencia forward from equalising on 38 minutes, but it was Espanyol who deservedly went in ahead at the break.

Argentinian midfielder Maxi Rodriguez made his long-awaited return from injury in the second-half against his former club, coming on for the hapless Pernia.

Petrov also came on for Colombian defender Luis Amaranto Perea as Atletico adopted a more attacking formation.

But Espanyol remained in control and were still creating more opportunities than the visitors.

Luis Garcia almost surprised Atletico goalkeeper Pichu with a cheeky free-kick and Moha shot over the bar on 58 minutes.

But eight minutes later, the Moroccan was stretchered off and must be doubtful for next week's UEFA Cup final.

Moha was replaced by Ferran Corominas and the young forward had an almost immediate impact.

Coro escaped down the left flank and saw Pichu push his low cross straight to the feet of Pandiani, who gratefully rolled the ball into the empty net to double the home side's lead on 76 minutes.

The Uruguayan could have scored a third for the Catalans when one-on-one with Pichu on 90 minutes, but waited too long and the chance was lost.

Petrov grabbed a late consolation goal for Atletico in the second minute of injury time, finding himself unmarked at the far post and smashed a powerful left foot shot past Kameni.

But Espanyol held on to stay in the hunt for a European place and all but end Atletico's hopes of qualifying for next season's Champions League.