Gamba Osaka were eliminated from the 2011 AFC Champions League at the hands of cross-town rivals Cerezo Osaka.
Cerezo entered the round-of-16 clash without a win from their seven J-League matches this season, but an 89th minute goal from midfielder Daisuke Takahashi was enough to send Cerezo through to the quarter-finals.
The result is a shock for Gamba, who topped Group E and were winners of the continental tournament in 2008.
Elsewhere on Tuesday, 2010 Chinese Super League runners-up Tianjin Teda were also knocked out of the tournament when they suffered a 3-0 loss in South Korea against Jeonbuk Motors.
Brazilian midfielder Eninho did most of the damage for the Korean side, bagging a brace, with Lee Seung-Hyun scoring the other goal of the game.
Reigning Iranian champions Sepahan booked their place in the last eight with a 3-1 win over Uzbek outfit Bunyodkor.
Brazilian midfielder Januario opened the scoring for the hosts after 27 minutes and Ibrahima Toure doubled their advantage five minutes later.
Bunyodkor pulled a goal back 12 minutes after the break, but a penalty from Hadi Aghily at the 69-minute mark sealed the game for the Iranian club.
A brace from Nuno Assis helped Al Ittihad book their spot in the last eight with a 3-1 win over fellow Saudi Arabian club Al Hilal.
The Portuguese attacker opened the scoring on 16 minutes, and when Abdelmalek Ziaya doubled Al Ittihad’s lead just a minute later it was curtains for the visitors.
Assis grabbed a second on the hour mark to make sure of the result, although Abdulaziz Al Dosari did pull one back late in the match for Al Hilal to salvage some pride.
