A late goal from Rodrigo Palacio has given Inter Milan a slender 1-0 victory over AC Milan in this evening's Milan derby.

Milan almost took the lead in the opening 10 minutes when Mario Balotelli found space on the turn inside the area, however, his effort flew just over the crossbar.

Kaka threatened for the visitors minutes later as he danced through the Inter defence, before his shot was kept out by Samir Handanovic.

Inter's first chance came when Fredy Guarin tested Christian Abbiati from distance, but the keeper did well to ensure that the ball stayed out.

Milan's Andrea Poli spurned the best chance of the half as the ball fell to his feet following a poor piece of keeping from Handanovic, but the midfielder blasted over when it almost looked easier to score.

Jonathan tested Milan straight after the break when he was teed up inside the box, but Abbiati did well to make the save.

Balotelli pulled off an audacious attempt to try and flick in a cross with his left boot, but the ball edged inches wide of the keeper's post as Inter went in search of the lead.

Milan had Daniele Bonera to thank in the 74th minute as he produced some excellent defensive work to keep out a dangerous cross from Nagatomo.

Inter continued to exert pressure on the visitors' defence and Mateo Kovacic might have done a little better as he blasted over despite having a number of passing options open to him.

However, the hosts' intent finally provided them with some results in the 86th minute when Palacio produced a fine finish with his heel to give Inter all three points in the derby.