ROME (AFP) - Inter Milan supremo Massimo Moratti insisted he still believed his team can reach the Champions League quarter-finals despite suffering a 2-0 second round first leg defeat to Liverpool on Tuesday.

Inter had Marco Materazzi sent-off for a second booking after only half an hour but held on bravely until the final five minutes when they conceded twice from Dirk Kuyt and Steven Gerrard.

But despite having a mountain to climb in the second leg, Moratti thinks his Serie A leaders have what it takes to turn the tie around.

"We're not out yet," he said on Thursday. "I have faith in the substance of the team: the players, the coach, the mentality, everything.

"The important thing is to convert one chance and that we prevent the other team from scoring, but that's football."

Despite his hopes, Moratti admitted that Tuesday night was a terrible evening for the club.

"I have to be honest, I didn't see anything that gave me confidence. It went badly from all viewpoints. We went a man down, (Ivan) Cordoba was injured, putting us in a difficult situation, everything went wrong."

"But we know there is still another 90 minutes to play which could change everything from the other day."