Ljungberg had Arsenal's best first-half chance

The Gunners have now lost six of their past seven away games in Europe.

They made five changes to the team that drew at home with Bolton on Saturday and started steadily enough, at least until the tenth minute when only Ashley Cole's clearance off the line kept out Vlaovic's powerful header from Karagounis's corner.

Arsenal's first attempt on goal came after 22 minutes, when Robert Pires found Freddie Ljungberg, who struck firmly enough but pulled his shot just wide.

Three minutes later, and just as they appeared to have weathered the initial Greek storm, the Gunners fell behind as Basinas spread the ball out to Michaelsen, who got away from Cole down the right.

The Dane whipped in an accurate low cross that found Karagounis 10 yards out and hs angled downward header bounced wide of Seaman's despairing dive.

We have to win our two home games to go through, but we must not be too alarmist

Arsene Wenger

Henry evades a challenge from Kygiakos

Kanu and Jeffers soon followed, for Ljungberg and Wiltord, and Pires shot over the bar after being teed up by Kanu, but still Arsenal were underperforming.

Van Bronckhorst curled a free kick won by Jeffers wide with 20 minutes left as Panathinaikos sat deeper and Nikopolidis made a flying save to block Jeffers with nine minutes to go.

But the new signing from Everton should really have done better with Arsenal's best chance of the night when his free header from the resulting corner went tamely wide.

Nikopolidis got down to Henry's low volley as Arsenal poured forward and Wenger paced the touchline in frustration.

But Panathinaikos were not going to be denied a first victory over English opposition at the 11th attempt.