BARRY FERGUSON today gazed ahead to the Champions League decider against Lyon - and was convinced Rangers can hold their nerve and make the last 16.

Walter Smith's side went down 3-2 in Stuttgart last night as poor defending cost them badly, but they still have the edge over the French champions in the battle for a place in the knock-out stages.

A draw against Alain Perrin's side at Ibrox on December 12 will now be good enough for Rangers, as Lyon bid to become only the sixth team in the history of the Champions League to make the last 16 after losing their first two group matches.

Ferguson knows it could be a glory night if Rangers get the point they need, but he is also aware that Lyon will arrive in Glasgow confident they can snatch the prize.

The Gers skipper - who was on the scoresheet in the Gottlieb Daimler Stadion to make it 2-2 - insisted: "It's in our own hands. We need a point against Lyon and we will be through.

"I realise it's going to be very tough against a top class side with a fine European reputation, but we can do it.

"With home advantage, with our own fans behind us making Ibrox special on the big European night, then hopefully we can produce one massive effort and get into the last 16. Obviously it would have been nice to have sealed it last night, but it wasn't to be.

"But we are very much alive and kicking. It's there for us, and we have to go and take it."

Victory in Germany last night would still not have been enough mathematically to take Rangers through, even with Lyon and Barcelona drawing 2-2.

But Ferguson lamented the lapses at the back that saw his side leave with nothing.

He went on: "I didn't think we deserved to lose. Normally at 2-2 in the Champions League away from home you'd be happy, but we were trying to win and they got a late goal which was disappointing.

"Throughout the game we were making chances and I always felt we had a good opportunity of winning, right up until they scored late on.

"It was an excellent start from us to get the first goal from Charlie, but we lost three sloppy goals which we were not happy about - it's hard to win Champions League games if you give away bad goals."

Boss Walter Smith praised his players' efforts, even if the manner of the goals they lost left him upset.

He will call for one final push against Lyon, and said: "We were obviously disappointed to lose last night.

"But credit to the boys the way they battled. We changed things near the end to try and get the win and we finally lost.

"If we show the same effort and endeavour in the Lyon game, then I'll be happy.

"We might not have much to show in terms of points from our last three games, but the spirit and determination has been superb.

"It has to be there one more time in terms of the Lyon game, and I'm sure it will be."