The English team had plenty of chances to score but it was the Glasgow side who came out on top, thanks to a late strike by Henrik Larsson.

"This is football and we deserved better," said Souness. "We have come to Parkhead and had the majority of the game.

"We put a lot of pressure on them and I felt that their only threat was going to come from set-pieces - and that is the way it happened.

"I said before the game that nothing would be decided after this game and that's not changed my mind.

"It is all to play for going into the second game.

"If we play as well as we did tonight then I'm confident we can score against them.

"We have a lot of important games before the second leg, but, when that match comes around, we will be ready for it."

But Celtic manager Martin O'Neill is also confident that his side can raise their game for the away leg.

"Overall, I am just delighted and thrilled to bits," said the Celtic boss.

"We could have played better, but the players have done the club proud tonight.

"Blackburn proved that they can play by winning at Highbury against one of the best teams in Europe and thrashing Newcastle.

"They are in excellent form, but by God we will be ready for them."

O'Neill admitted that Celtic were second best early on but said: "We had to dig in and do without the ball for periods of the first half.

"I tried to sort things out at half time and I asked them to take the shackles off, compete and pass it properly, which we are capable of doing.

"I was delighted with the second half and I thought we deserved the goal."