Real, who have not lost a league game in their neighbours' back yard since the 1998-99 season, took a first-minute lead through Ruud van Nistelrooy but Simao Sabrosa's 89th-minute free-kick looked to have saved Atletico.

However, Higuain showed nerves of steel deep into injury-time to slot home the winner from the spot after John Heitinga had brought down fellow Dutchman Royston Drenthe in the box.

Both teams had also played more than half the match with only 10 players after Luis Perea and former Manchester United striker Van Nistelrooy were shown straight red cards in separate first-half incidents.

The defeat was an agonising way to end a turbulent week for Atletico, who face Liverpool in the Champions League in midweek.

On Thursday they had received a temporary reprieve from the stadium ban and fine handed down to them by UEFA following incidents during the recent Champions League match against Marseille.

In today's other La Liga match, Espanyol's Raul Tamudo saw a second half penalty saved by Villarreal goalkeeper Diego Lopez in a match which finished goalless.