Xabi Alonso's side had won all six of their opening games but Diego Simeone's Atletico overran them at the Metropolitano stadium, taking the lead through Robin Le Normand.

Kylian Mbappe and Arda Guler netted to put Real Madrid in front but Alexander Sorloth levelled for Atletico at the end of a thrilling first half.

Alvarez fired home from the penalty spot and then bent home a free-kick, with Antoine Griezmann grabbing the fifth late on to seal an important win after a shaky start to the campaign, with Atletico rising provisionally to fourth.

Led by a flying Mbappe, Real came into the derby as the only side in the league with a 100 percent record. Although he French superstar scored again to reach eight league goals for the season, Atletico attacked relentlessly and deserved their victory.

Giuliano Simeone, coach Diego Simeone's son, took advantage of slack Madrid defending to whip in a cross which Le Normand headed home after 14 minutes to open the scoring.

The visitors reacted well and Mbappe levelled with a crisp finish after breaking in down the right.

Atletico were taking the game to Real Madrid, with Alonso's side content to spring forward on the counter, trying to utilise the pace of Vinicius Junior and Mbappe.

The Brazilian winger created Madrid's second goal, turning brilliantly in the box to break away from Marcos Llorente and Le Normand, before crossing for Guler to strike.

Alvarez, who netted a hat-trick against Rayo Vallecano in midweek, curled a shot around Thibaut Courtois but against the box as Atletico continued pushing forwards.

Atletico defender Clement Lenglet scored but the goal was ruled out for handball, with the Frenchman using his forearm to deflect it home.

In first-half stoppage time Atletico pulled level, with Sorloth, lurking behind Dean Huijsen, planting a header beyond Courtois.

The Norwegian striker celebrated with Atletico fans, who embraced him -- a risky move when already on a yellow card, but he was not dismissed.

Atletico moved in front for the second time in the match when Guler gave away a penalty for a high foot on Nico Gonzalez, catching the Rojiblanco player's head.

Alvarez, who had a penalty controversially disallowed in a Champions League shoot-out the last time these sides met, beat Courtois from the spot, even though the Belgian went the right way.

Courtois saved from Sorloth but despite getting a hand to Alvarez's free-kick, he could not keep it out as Atletico pushed two goals clear.

On as a substitute Atletico talisman Griezmann wrapped up a superb victory for his team, rolling the ball past Courtois as the home fans rocked in delight and the players did a lap of honour, after only their third league win of the season.