Gareth Bale broke free into the City box before driving the ball past a helpless Joe Hart with the help of a deflection off Fernando.
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Citizens captain Vincent Kompany was not able to complete the game once again, as an injury forced him to leave the pitch early in the match.
Gareth Bale could win the Champions League for a second time after his deflected effort helped see off Manchester City in the semi-final.
Madrid’s progression means his year’s final in Milan will be a repeat of 2014’s version, where Los Blancos claimed La Decima against Diego Simeone’s men in Lisbon.
Despite initially giving the goal to Bale, UEFA eventually marked it as an own goal for Fernando.
“It was a close semi-final and we have come out the wrong side of it”.
Ronaldo has 16 goals in this season’s Champions League, well ahead of second place Robert Lewandowski, who has nine goals.
Pellegrini said: “It was very important for me to try to reach the final but we couldn’t”.
When Real Madrid meets Atlético Madrid in the one-match final at the end of the month, it will be the second time in the past three years the two Madrileño teams have met in Europe’s biggest club tournament.
Fourth-placed City are being challenged for their Champions League spot by Manchester United and West Ham and they now face a crucial game at home to third-placed Arsenal on Sunday. “They got a very lucky goal, but it is what it is”.
“Some like it more, some like it less, but I have no doubt that I’m already in the history of football”. Real Madrid meanwhile are into the Champions League final, where they will play Atletico Madrid.
“We are going to play against Atletico Madrid and I am happy because it will be special in the Champions League final”.
“Of course if you don’t reach the final you miss an opportunity”, he said.
6 – Atletico Madrid’s defensive capabilities were perfectly illustrated by the fact that the goal Alonso scored was the first they had conceded in 632 minutes, in all competitions.
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City’s only clear chance after halftime came from a long-range shot by Sergio Aguero in the 89th, but it sailed just over the crossbar. “During whole game we tried to make some difference”.
