Ruud van Nistelrooy notched his 31st goal in the competition from the penalty spot but it was in vain as Stuttgart took the spoils against the 1999 Champions League winners.

Alex Ferguson laid the blame for the defeat on his defenders.

"We defended terribly for the two goals and if you defend badly in games of this nature you deserve everything that happens to you," said Ferguson.

"From a position of containing them we surrendered within minutes and allowed Stuttgart to become strong.

"We committed ourselves to winning balls we shouldn't have been winning, all we needed to do was drop off to the edge of the box and be patient.

"We kept risking the ball when we should have been playing for the away goal because if they come to Old Trafford that could be crucial. They should know the rules of the competition, so that was disappointing too.

"Perhaps Ruud's penalty will be a lesson to us."

Ferguson said the next match, against the new Group E leaders Rangers on October 22, had risen in importance.

"We're going to be thinking of winning now," said the Scotsman.

Stuttgart coach Felix Magath said: "I am lost for words. To beat Manchester United in front of these great fans is unbelievable.

"This is one of the greatest victories of my career."

Winger Alexander Hleb, who Ferguson had picked out as the danger man before the match, caused real problems early on for the visitors with his pace while the returning Paul Scholes was probing for Manchester United at the other end.

On the quarter hour mark some dazzling footwork saw Dutchman van Nistelrooy race clear but he could only hit a tame shot at Timo Hildebrand in the Stuttgart goal.

However, Stuttgart were brimming with confidence and looked the more likely to score on home turf.

At half-time the tie was locked at 0-0 with the defences of both teams nullifying the attacking threat to the extent that neither Hildebrand nor United goalkeeper Tim Howard had a notable save to make in the first 45 minutes.

However, straight after the interval the hosts almost took the lead with a whipped in corner that was completely misjudged by American Howard who was grateful to Scholes who cleared off the line.

It was a warning for the Premiership champions as Stuttgart took the lead on 50 minutes with Szabics racing through and curling a precise shot past Howard.

Worse was to come for a shell-shocked United two minutes later as Kuranyi scored his second goal in as many Champions League matches, circling the static defence to rifle home and send the crowd at the Gottlieb-Daimler into a state of rapture.

United needed to call on all their European experience in Germany and were handed a lifeline on 67 minutes.

Portuguese star Cristian Ronaldo was felled in the penalty area by Hildebrand and van Nistelrooy finished with aplomb.

Buoyed by the goal United surged forward but came undone on the counter attack as Rio Ferdinand chopped down Kuranyi in the area.

Howard produced a fantastic save parrying Fernando Meira's penalty to keep his team in the match.

However, Stuttgart showed why they have not conceded a goal in the seven Bundesliga matches so far to hold firm and record an emotional victory.

The Germans face Panathinaikos on October 22 in their next European game while United will look to recover in the 'Battle of Britain' against Rangers at Ibrox.