Ronald de Boer headed Rangers back in the game just before the hour mark but he and his team-mates could do nothing to prevent his side’s first home loss since September 2001, when Celtic were also triumphant.

This result, coming on the back of Celtic’s away win over Boavista that clinched a place in the UEFA Cup final, cut Rangers’ lead at the top to just five points.

Celtic complained bitterly about having to play this game when it was first scheduled so close to the UEFA Cup tie but their performance on the day had nothing in common with that undignified whinging.

The title’s destiny still remains in Rangers’ hands however despite a setback that smashed their 100% home record and the pennant will come back to Ibrox for the first time in three seasons if they win the rest of their games.

But this was another huge result for the Celtic faithful to celebrate and they joyfully taunted their rivals by wearing sombreros and waving their passports to rub in the fact they are bound for Seville next month.

Rangers wasted no fewer than three superb opportunities in the first 15 minutes and ended up regretting them in spades.

The first, in the third minute, was wasted by the woeful Claudio Caniggia, who had been sent clear by de Boer only to lift the ball over goalkeeper Robert Douglas but wide of the goal.

Lorenzo Amoruso headed over a Fernando Ricksen corner from all of seven yards three minutes later and de Boer, who had overcome a calf injury to start, screwed a shot wide with the goal at his mercy after a Barry Ferguson free-kick bounced all over a crowded Celtic box.

By that time Javier Sanchez Broto had been handed an unexpected Old Firm debut when Douglas went off in the ninth minute, with his suspect thigh muscle presumably having let him down once again.

A free-kick almost gave Celtic a freak opener in the 27th minute when his delivery into the box, from all of 50 yards out, was allowed to bounce past everyone and on to Stefan Klos’ right-hand post before the German’s delayed reactions saw it palmed away to safety.

Rangers’ reprieve was short-lived however as a minute later Amoruso extended a leg across Hartson as the two challenged in the box and the Welshman wasted no time falling over it.

Henrik Larsson had taken, and missed, the previous spot-kick but Thompson was coolness personified by slotting past Klos.

The second goal two minutes from the break was also an unfussy finish and was performed by Hartson after Didier Agathe’s centre had been flicked on by Larsson’s heel.

The Welshman, whose move to Rangers three years ago was scuppered by a medical, escaped punishment when Craig Moore went down after apparently colliding with his arm.

But he was booked seconds later for fouling Ricksen, joining Agathe in the book after the winger had felled Peter Lovenkrands on the run.

Rangers took Bert Konterman off at the break and sent Mikel Arteta on in his place and the Spaniard saw Amoruso head his corner wide just before de Boer made it 2-1 in the 57th minute.

Arthur Numan was the supplier with a great cross from the left and his fellow countryman, having lost his marker in the box, gave Broto no chance with a header.

Rangers had half an hour to square the game but never really looked like doing so and the game began to clock up more yellow cards than chances at this point.

Lovenkrands was booked shortly after Hartson was replaced by Stilian Petrov in the 66th minute, for bringing Agathe down in full flight and Moore was shown a yellow card for a challenge that hurt the substitute.

Larsson wasted two late game-sealing opportunities, first firing weakly at Klos after Sutton had mugged Barry Ferguson in possession and then the German was in the way of his next shot after a clever backheel in the box from Sutton, who was soon booked for one foul too many when he brought Ricksen down.

Rangers threw Amoruso up front as an extra striker but he could only head a Ferguson free-kick wide, after which Broto was booked for time-wasting.

The Celtic fans stayed in their seats after the final whistle and taunted their departing rivals in keeping with the Spanish theme. “Adios!” they sang.