Celtic once again were broken on the wheel of Rangers' resolve yesterday, losing not only the match but their lead in the Premier Division. The Ibrox side's second goal, conjured up by Jorg Albertz, allowed the champions to ease past their most dangerous challengers by the smallest goal difference with four matches remaining.

Nevertheless the Rangers manager Walter Smith said Celtic were favourites for the title. "They have three home games and one away and, if you can't do well in that situation, you don't deserve to win the league," he said.

Celtic's coach Wim Jansen also believes his side can prevent Rangers from winning a record 10 in a row despite the Ibrox setback. "We have to pick ourselves up again," said the Dutchman. "We know all the games now are finals."

Jansen criticised his side for losing the second goal before adding: "But I think they were better than us."

Celtic fans may be comforted by the thought that Rangers, on paper, have the more demanding finish, with three away matches. But Rangers do not play the game on paper, preferring the scramble of a field on which they can repeatedly demonstrate their refusal to concede a title that seemed to have been prised from their nine-year possession three weeks ago.

They were out-played for most of the game yesterday, but only on three-quarters of the pitch. In that last fourth, where Richard Gough and Lorenzo Amoruso stood shoulder-to-shoulder, Celtic were again fatally flawed.

The visitors were not helped by the loss of Darren Jackson after 23 minutes to be replaced by the slight Harald Brattbakk in attack, leaving Henrik Larsson to take on the home defence single-handed in a contest he could not win.

Rangers took the lead within a minute of Brattbakk's arrival from the bench. The goal was a shock because Celtic had been so much in control, secure in the knowledge that even a draw would virtually assure them of their first championship in 10 years.

Amoruso's free-kick towards the penalty spot was headed out by Marc Rieper but the ball fell to Jonas Thern 25 yards from goal. The Swede hit a sensational volley with his right foot high to the right of Jonathon Gould.

Yet Rangers were generally outdone in midfield, where Paul Lambert, Craig Burley, Simon Donnelly and Phil O'Donnell seemed quicker to the ball and used it better.

Celtic would have been level but for Andy Goram's stretching save five minutes into the second half. Donnelly's corner from the right was headed across to Rieper and the Dane nodded on the ball to the head of Alan Stubbs. The defender's header would have gone in under the bar but for Goram's fingertips.

Celtic's most menacing move, also before they conceded the second goal, came from Lambert's run inside from the right. The midfielder took out the entire defence, including Goram, and left Burley unattended and screaming for the cut-back. Lambert decided on a shot but sliced the ball wide.

That was a pivotal moment, as Celtic became discouraged. There was no doubting their overall control but they were also vulnerable to the kind of break with which Albertz confirmed the victory.

The German carried the ball from the halfway line, Burley slipped and Stubbs - who should have known Albertz likes the ball at his left foot - allowed him precisely that and the shot slithered low to the left of Gould from 15 yards.

Hearts' interest in the championship appeared to have been ended by their 2-1 defeat in the derby with Hibs at Easter Road on Saturday, but Rangers' victory will resurrect their ambition. Four points behind the Old Firm, they face Rangers at home on Saturday week by which time they should have rid themselves of the memory of Easter Road where Barry Lavety and Kevin Harper scored in the second half to give Hibs hope in their struggle to avoid relegation; John Robertson levelled between times.

Rangers: Goram, Cleland, Albertz, Gough, Amoruso, Bjorklund, Thern, McCoist, Durie (Gattuso 71), McCall, Laudrup. Subs Not Used: Durrant, Negri. Booked: Amoruso, Durie, Bjorklund, Cleland. Goals: Thern 24, Albertz 66.

Celtic: Gould, Boyd, Annoni, Donnelly, Rieper, Stubbs, Larsson, Burley, Jackson (Brattbakk 23), Lambert, O'Donnell. Subs Not Used: Hannah, McKinlay. Booked: Annoni, Larsson. Att: 50,042.

Referee: H Dallas (Motherwell).