Inter Milan took a big step towards reaching the Champions League final as they beat their city rivals in a thrilling Milan derby at San Siro.

In a game that had been anticipated for weeks in Italy and was witnessed at the ground by a vocal and passionate 80,000-strong crowd, Inter made the perfect start when Edin Dzeko volleyed home in the eighth minute.

The goal silenced the Milan fans - the designated home side for this tie in the stadium the two sides share - as they significantly outnumbered the Inter supporters.

And the hosts were stunned further three minutes later when Henrikh Mkhitaryan swept a shot beyond Mike Maignan after being set up by Federico Dimarco.

Hakan Calhanoglu hit the woodwork as Inter threatened to get a third, but there was hope for AC Milan when referee Jesus Gil Manzano reversed a decision to award the visitors a penalty, deeming Lautaro Martinez to have dived after consulting the pitchside monitor.

Inter dropped their tempo in the second half as they looked to protect their two-goal advantage and it almost presented AC Milan with a lifeline as Sandro Tonali struck the post with a shot from the edge of the box.

But Inter held firm and are in a strong position to reach the final - where they will face either Manchester City or Real Madrid - when the two sides meet again at San Siro for the second leg on Tuesday, 16 May (20:00 BST).