UPDATE 3-Soccer-Barca close after Real lose at home to Valencia

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By Simon Baskett

MADRID, March 23 (Reuters) - Barcelona closed to within four points of Real Madrid at the top of the Primera Liga on Sunday after the leaders lost 3-2 at home to Valencia while the Catalans beat Valladolid 4-1 at the Nou Camp.

Real slipped to only their second home defeat of the season when former Atletico Madrid forward Angel Arizmendi struck a dramatic 89th-minute winner in a frenetic encounter which featured two goals apiece from Raul and David Villa.

Bernd Schuster's side, who have lost five of their last eight games, lead the table on 62 points, Barca follow on 58, while Villarreal, 2-1 winners at basement side Levante, are in third spot on 56.

"There are lots of ways to lose a game and this was a huge disappointment," Schuster told reporters after the game.

"We are suffering too many defeats and are paying a heavy price for the few errors we are making."

Atletico Madrid tightened their grip on the final Champions League berth with a 2-1 win at Sevilla on Saturday, their first win at the Sanchez Pizjuan in over 15 years.

Valencia were first to strike at the Bernabeu, Villa sweeping the ball past Iker Casillas 11 minutes from the break after he had beaten the offside trap to latch on to a clever through ball from David Silva.