Matteo celebrates his headed opener at the San Siro (GaryMPrior/Allsport)

Even though AC Milan hit back to draw 1-1, David O'Leary's £4.5million signing from Liverpool virtually repaid that fee with the near-post header that guaranteed Leeds second place in Group H and a £10m jackpot from six more lucrative ties.

With Manchester United progressing following a 1-0 over Dynamo Kiev at Old Trafford and Arsenal going through despite a 3-0 defeat by Shakhtar Donetsk in the Ukraine on Tuesday, Leeds' success meant that England's three representatives this season had all reached the second phase of the Champions League for the first time and guaranteed a fourth Premiership side in next season's competition.

Milan's £13m Ukrainian striker Andriy Shevchenko had fuelled Barcelona's darkest fears that the Italians and Leeds would somehow play out the draw that would knock out the Spaniards, who needed Leeds to lose in the San Siro stadium to progress.

Remarkably, Shevchenko, who had scored an impressive 27 goals in 41 European club games before last night, managed to hit a 25th-minute penalty against the foot of a post after Gary Kelly handled a cross from lively Brazilian raider Serginho.

Leeds goalkeeper Paul Robinson, hoping for an England call-up on Thursday from his old Under 21 coach Peter Taylor, was sent the wrong way but the 6,000 Leeds supporters danced with glee behind his goal as the ball rebound off the woodwork.

Their celebrations increased 10-fold when 25-year-old Scot Matteo stole in front of two Milan defenders to head home Lee Bowyer's corner - his second goal since arriving from Anfield at the start of the season.

Milan were already through to the next stage before last night and Serginho's equaliser, following Kelly's missed tackle after 68 minutes, was not enough to rescue Barcelona, who needed to beat Besiktas of Turkey and then rely on a Milan victory to qualify for the next phase in place of Leeds.

The Spanish side strongly denied offering Milan's players a £1.6m bonus as incentive to win the game, and they could only fume as fit-again Leeds skipper Lucas Radebe brilliantly led O'Leary's side to another great night in Europe.

Injury-ravaged Leeds had looked down and out in the group which O'Leary dubbed the toughest of all when they were hammered 4-0 in the Camp Nou by a rampant Barcelona in their opening match in September.

But far from being out of their depth, Leeds bounced back in style with victories over Milan and Turkish rivals Besiktas at Elland Road before last night's win confirmed the club's triumphant return as a genuine force on the European scene.