Manchester United and Manchester City were bundled out of the Europa League by less glamorous opponents Thursday as their wretched continental seasons ended in last-16 defeat. Both had parachuted into the second-tier competition after group-stage exits from the elite Champions League and both boasted much bigger resources than their conquerors. But the manner of the exits could not have been more different. City clawed its way back from 2-0 down on the night to win 3-2 against visiting Sporting Lisbon but went out on away goals after a 3-3 aggregate result. United was outclassed in both legs by Athletic Bilbao, losing 2-1 on the night in Spain and 5-3 overall. Two down at halftime at Eastlands, City staged a breathtaking rally with two goals by Sergio Aguero and a Mario Balotelli penalty to stand on the verge of a remarkable comeback. A fairytale ending was millimeters away when goalkeeper Joe Hart's header whizzed just wide in the last minute of stoppage time. There was no such passion on show by an apathetic United which was undone by a stunning first-half volley from Fernando Llorente and a deflected strike from Oscar de Marcos. United forward Wayne Rooney scored a superb 80th-minute consolation goal but the damage was already done as the enthusiasm and talent of La Liga's seventh-placed side proved too much for the English Premier League champions. Sporting and Bilbao are joined in the last eight by Valencia, which drew 1-1 at PSV Eindhoven to go through 5-3 overall, and Hanover 96 which beat Standard Liege 4-0 for a 6-2 aggregate win. AZ Alkmaar also progressed despite going down to 10 men after two minutes when Nick Viergever was sent off and falling two goals behind in the first quarter of an hour at Udinese. The Dutch side eventually lost 2-1 but squeezed through 3-2 on aggregate. Three La Liga sides advanced with Atletico Madrid joining Bilbao and Valencia in the next round after a 3-0 win at Besiktas gave it a 6-1 aggregate triumph. Schalke 04 also made the quarterfinals having overhauled a first-leg deficit to beat Twente Enschede 4-1 on the night and 4-2 overall. Metalist Kharkiv of Ukraine progressed on away goals after a 2-2 aggregate result against Olympiakos Piraeus. Bilbao to play Schalke Athletic Bilbao was rewarded for eliminating Manchester United by being drawn Friday to play Schalke in the quarterfinals. Atletico Madrid, the 2010 winner, will play at home first against Hannover in another Spain-Germany clash. Spain's third challenger, Valencia, will travel to the Netherlands for the first leg against AZ Alkmaar. Sporting Lisbon is at home first against Metalist Kharkiv of Ukraine. First-leg matches are played March 29, and second legs on April 5. In the subsequent semifinals draw it was: Atletico Madrid or Hannover vs. AZ Alkmaar or Valencia; and Sporting Lisbon or Metalist Kharkiv vs. Schalke or Athletic Bilbao.