Nantes handed Olympique Lyon their first defeat of the season on Tuesday, knocking Gerard Houllier's side out on penalties in the second round of the French League Cup.

Goalkeeper Mickael Landreau pulled off two saves in the shootout to lead Ligue 1 strugglers Nantes to a 4-3 win on penalties after the tie had finished 1-1 after extra-time.

Runaway Ligue 1 leaders Lyon, entering the competition in the second round like all top-flight teams, forced extra-time with a last-minute

Mali striker Mamadou Diallo had opened the scoring for Nantes with a volley on the half-hour.

Coach Houllier rested several players including France goalkeeper Gregory Coupet and Brazil midfielder Juninho, who was sorely missed.

Lyon are seven points clear in Ligue 1 and have a 100 percent record after three matches in Group F of the Champions League.